[McKinsey: Artificial Intelligence May Impact the Extent of Fed Rate Cuts in 2026] McKinsey's Dustin Reid stated that AI-driven economic growth could suppress the extent of the Federal Reserve's anticipated rate cuts next year. Although the market expects the Fed to cut rates up to three times, faster growth may require tighter policies. The yield on the U.S. 10-year Treasury note is expected to rise from 4% to 4.4% by mid-2026.