by: xpoolPosted on:

AI Growth May Hold Back Interest Rate Cuts in 2024

A surge in artificial intelligence (AI) growth could significantly impact the U.S. economy’s trajectory, potentially influencing the Federal Reserve’s plans for interest rate reductions in 2024. While economists anticipate up to three cuts, Dustin Reid from McKinsey & Company suggests that a faster-than-expected AI-powered economy could necessitate tighter monetary policies, pushing U.S. Treasury yields higher. His forecasts predict a rise in the 10-year U.S. Treasury bond yield from its current level of 4% to 4.4% by mid-2026.

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