AI-Driven Growth May Impact U.S. Interest Rate Cuts in 2024

According to Odaily, the growth driven by artificial intelligence could maintain the strong momentum of the U.S. economy, potentially affecting the Federal Reserve's anticipated interest rate cuts next year. While the market expects the Federal Reserve to implement up to three rate cuts, Dustin Reid from McKinsey & Company suggests that faster growth due to AI might necessitate tighter policies, leading to higher U.S. Treasury yields. He forecasts that by mid-2026, the yield on the 10-year U.S. Treasury bond will rise from the current 4% to 4.4%.