David Solomon

It doesn't mean that's why we're one There's a lot of uncertainty

I wouldn't I wouldn't use that term.

But what I would say is businesses that are

particularly sensitive to lower income or paycheck to paycheck consumers have been a little softer and i would say you know consumers that are paycheck to paycheck feel more pressure in an environment with three percent inflation and so there's no question inflation is very very difficult for people

who live paycheck to paycheck.

And so it's something I think we have to watch very carefully.

You know, I know there's been progress from where we were a few years ago on inflation, but it's important that we get inflation back to target because in any environment where it runs hotter, certainly people in that income strata feel it more acutely.

But I'd still say overall, the U.S.

consumer is in good shape.

Most of the data that I see around the U.S.

consumer is still quite constructive.

But I think you're highlighting something that needs to be watched carefully.

I would put the three situations that you mentioned in the category at the moment of idiosyncratic events.

But what I would highlight is I think there's a great opportunity for people that are in credit businesses and are deploying significant capital as lenders in credit businesses to look at their procedures, their practices, their underwriting standards, look through their portfolio, and really take a strong evaluation of where they are.

You can't separate the fact that we've been in a very, very long, easy credit cycle, one of the longest I've seen in my career, without a real credit pullback, without an economic environment that's really put an enormous amount of pressure on credit.

And in that context, credit spreads are historically tight.

And I know at some point there will be a credit cycle.

It will probably come at a period of time when the economy slows more acutely or there's some sort of a macro event that changes confidence we have in growth and the trajectory of the economy.

And when that happens, given the loss of lending activity, there will be losses in credit and those losses will be felt across the system.

But that's different than a systemic crisis.