Mary Daly

And if you look at inflation, you're seeing that it's been pretty contained so far in the goods prices, which have been directly tariffed.

And then you look at the other parts of inflation, you just don't see much of a run up.

So that's good news.

And inflation expectations, what people expect, remain very well anchored.

Look at productivity, and you see that productivity is rising, GDP growth is rising while the labor market is slowing.

So that tells me there's a little bit of that boost coming from firms looking to do more with less, but that's also causing a slowdown in the labor market.

So the 50 basis point adjustment we've made has helped support the labor market, but still keeps policy restrictive so that we can put downward pressure on inflation.

Well, I'm going to really look at things that improve productivity to think about the 90s.

And it's more than just the stock market valuations for AI companies.

It really is about the companies out there who might be using AI and then asking them, going directly to them and asking them, what's it doing for your bottom line and how are you using it?

And what we're hearing are pretty encouraging but very early signs.

They see how it can help their bottom line, how it can improve their productivity, even how they can improve.

be supportive of their workers, give them more interesting work, take the less interesting work away.

But they all tell us it's early days, so more to come on that.

And then on the inflation part, are we in the 1970s?

Really asking employers and firms, what are you doing with prices?

Are you thinking about raising your prices?

How are you going to think about losing volumes if you do so in a slowing economy, especially for consumers from the 50th percentile down?

And putting those two things together, I think we'll get a lot of clarity about which direction we're heading.

And with policy being slightly adjusted, we are in a good place to continue to evaluate the information before we make any decisions.