McKinsey: AI spending may limit the Fed's rate cuts in 2026.

Golden Finance reports that AI-driven rise may keep the US economy on a strong trajectory, thus suppressing the Fed's anticipated interest rate cuts next year. Although the market expects the Fed to cut rates up to three times, Dustin Reid from McKinsey stated that faster growth brought by AI may require tighter policies, leading to higher US Treasury yields. He predicts that by mid-2026, the yield on the US 10-year Treasury will rise from the current 4% to 4.4%.