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Goldman Sachs Asset Management warned that stronger-than-expected US inflation could push the Federal Reserve into a more aggressive tightening cycle, with rate hikes potentially extending into 2027. Lindsay Rosner, the firm's head of multi-sector fixed income investing, flagged the possibility of a December rate increase. The call implies borrowing costs could stay elevated for longer than markets currently anticipate. Investors will watch upcoming US inflation prints and Fed communications for confirmation of a higher-for-longer path.

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Federal Reserve, Goldman Sachs (GS), Lindsay Rosner

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