According to Jin10, PIMCO said AI investment is boosting U.S. demand through corporate capital spending and stock-market wealth effects, making inflation harder for the Federal Reserve to control. Because AI-related investment is less sensitive to interest rates, further hikes could curb housing and other traditional sectors before affecting AI investment. PIMCO called for more gradual tightening to avoid excessive harm to non-AI industries.

The San Francisco Fed said AI infrastructure construction is lifting demand for and prices of U.S. technology equipment, with no clear signs that AI-related price pressures have spread significantly to other industries. Over the long term, productivity gains from AI could curb inflation, while investment demand may push prices up in the short term, complicating monetary policy trade-offs.

Goldman Sachs Asset Management said cumulative AI capital spending of about $1 trillion, along with government spending, is driving a recovery in global economic activity. U.S. third-quarter GDP growth was at one point tracked at an estimated 3.4%. Higher prices for AI-related technology products are also pushing up U.S. goods inflation. The firm expects one more Fed rate hike this year, but said further tightening may not be needed in 2027 as inflation normalizes.

Morgan Stanley said demand for data center construction remains strong, but financing costs are becoming a new obstacle to AI investment. Since January, the U.S. five-year Treasury yield has risen by more than 100 basis points, while credit spreads on data center-related assets have widened. AI investment may support growth but is not entirely insulated from high interest rates.

BlackRock said underlying demand for AI remains strong, but returns and the sustainability of financing warrant closer scrutiny. AI infrastructure’s demand for energy, electricity, and key resources could create supply bottlenecks and inflationary pressure. Higher long-term rates also raise financing costs for capital-intensive projects.

Citi Wealth Management said AI investment is expanding from infrastructure into more areas of the real economy and is supporting business investment and growth. The U.S. economy and corporate earnings remain resilient, but inflation, high interest rates, and geopolitical risks could keep financial conditions volatile. AI investment growth does not make the economy immune to tightening.

U.S. Bank said U.S. consumer spending remains healthy and AI-related business investment continues to support growth, while energy costs and other supply-side factors are adding to inflationary pressure. Economic resilience may lead the Fed to continue gradual rate hikes, but a sharp pullback in AI investment combined with high rates and falling capital spending could increase the risk of an economic slowdown.