McKinsey: artificial intelligence spending may limit Fed rate cuts in 2026
2025-11-26 16:49:58
Artificial intelligence-driven growth is likely to keep the US economy strong, dampening the Federal Reserve's expected rate cuts next year. While markets expect the Fed to cut rates as many as three times, Dustin Reid of McKinsey & Company says faster growth from artificial intelligence may require tighter policy, sending US Treasury yields higher. He expects the 10-year Treasury yield to rise to 4.4% by mid-2026 from the current 4%.
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