China Rate Shift Raises Fed Move Odds, Nomura Bond Trader Says
- China cut to curb volatility, encouraging the Fed, Gorman says
- Gorman's view on liftoff: `I think they're going in December'
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China’s interest-rate cut will lead the Federal Reserve to raise borrowing costs in the U.S. this year, according to John Gorman, the head of dollar-denominated debt trading for Asia and the Pacific at Nomura Holdings Inc.
China’s policy shift last week will help curb volatility in its markets, removing an obstacle that kept the Fed from acting at its last meeting in September, Gorman said. The U.S. central bank’s next policy session is Oct. 27-28. Asian stocks rose Monday after China cut both interest rates and lenders’ reserve requirements on Friday.