Mary Daly

AI is going to change the world to be like electricity or the steam engine.

And then the people who are a little more skeptical are saying it's going to be a business as usual technology.

Think of computers and the Internet.

The thing that's true about both of those is they're both productive.

You get productivity from both of those.

They both help with growth.

They both help the pie in the U.S.

expand.

And so we're not talking about a bunch of ideas with no backing.

We're talking about equity investors, not highly leveraged, going in and making bets, really, on whether it's going to be transformative or business as usual.

But everybody agrees on one thing.

It will change productivity.

Well, you know, I guess this argument that we've somehow lost our power, monetary policy doesn't transmit, I simply don't see it in the information.

If you go out and you look at what happened when inflation was running really, really high, we raised rates pretty aggressively, and mortgage interest rates rose rapidly, car loan rates rose rapidly, and the economy slowed, inflation came down.

Right now, what I'm seeing is we adjust rates, mortgage interest rates come down.

Not one for one.

That's not how it works.

Usually it's less than one for one, but they come down.

You see a little more activity in the housing market.

You see a little more activity in the borrowing market more generally.