“we do expect deposit pricing to perform similarly on the way down as it did on the way up. So, we'll get the benefit, of course, because our -- we will get the benefit should rates suddenly start to come down of deposit costs also coming down very quickly.”

In context

“ou for taking my questions. Most of them have been answered. But… Robin Vince: Hi, Mike. Michael Brown: Yes, hi, Robin. Hi, Emily. I guess, my question was kind of as we think about further out into 2023, and so, the market is assuming some rate cuts could occur before year-end. As we get -- if we get to that point, what is your view on how deposit pricing performs there, right? Because if your deposit betas were generally higher than the broader banking system on the way up, how do we think about it to the point where we start to see some early rate cuts? Because I guess in that backdrop, it's not an expectation that we're heading back to where we were, just some modest rate cuts. So, how do you think about the deposit pricing in that environment? Emily Portney: Sure. I'll take that. So, we do expect deposit pricing to perform similarly on the way down as it did on the way up. So, we'll get the benefit, of course, because our -- we will get the benefit should rates suddenly start to come down of deposit costs also coming down very quickly. And likewise, I'll just remind you that to the extent that rates start to come down, then AOCI will pull to par faster. Michael Brown: Okay. Great. Thank you for that. And then, just one more on NII. Appreciate the full year annual guidance. As you look at the fourth quarter, it was up about 14% sequentially. Within the annual guidance, any view on how we should think about the first quarter? I know it's a moving target, but any range here just to help us think about the trajectory. Emily Portney: Yes. As I mentioned, the range of outcomes is very wide. So, it's really hard to predict the trajectory in any given quarter. It really is very dependent, probably most specifically on the deposit trajectory. And like I said, if NIBs remain elevated, there's upside there. Michael Brown : Okay. G”