Richmond Federal Reserve President Thomas Barkin stated that investment in the artificial intelligence (AI) sector is exerting pressure on the neutral interest rate. Barkin noted at an event in Washington on Thursday: "A range of AI-related factors are showing signs of inflationary pressure." "Everything surrounding these investments, whether it's construction, labor, or electricians, are areas to watch for signs of inflationary pressure." "Pressure from AI investment is placing upward pressure on the neutral rate." "The longer inflation remains elevated, the more difficult the final mile of the task becomes." Note: Barkin does not have a voting role on the Federal Open Market Committee (FOMC) this year.