“Look, back in January, the environment was a little bit different to where it is today. We feel we've had a very good start to NII. We did a lot of scenario analysis in January to come up with that number. And look, there was a big kind of divergence between the market implied forward curve, which we use to kind of budget and project where we think NII is versus where the Fed is in the dot plots. If you look at it today, there's a little bit more of a coming together of that and there's more of a market color around higher for longer. We're positioned for that. We feel good about this. And as a consequence of that, we've locked in a good quarter and we feel good about subsequent quarters.”

In context

“in: Welcome, Dermot. To follow up on your NII, you reiterated 20%, perhaps a little upside. Obviously, with a good start to the year that implies a sequential slide as the year goes through. Can you just kind of help us understand how that works through in terms of what you're expecting for deposit trends and liability costs as you look through to that. Dermot McDonogh: Okay. Good morning, Ken. And thanks for the question. Before I answer, I'd just like to acknowledge Emily, who is the former CFO and has been a tremendous partner with the transition and to the finance team and Investor Relations team who really helped me settle in well, and it's a real privilege to be here, and I look forward to working with you all. So on to your specific question around the mix between NII and deposits. Look, back in January, the environment was a little bit different to where it is today. We feel we've had a very good start to NII. We did a lot of scenario analysis in January to come up with that number. And look, there was a big kind of divergence between the market implied forward curve, which we use to kind of budget and project where we think NII is versus where the Fed is in the dot plots. If you look at it today, there's a little bit more of a coming together of that and there's more of a market color around higher for longer. We're positioned for that. We feel good about this. And as a consequence of that, we've locked in a good quarter and we feel good about subsequent quarters. And look, the important thing in my remarks was skewed to the upside. The range of outcomes is probably more uncertain today than it was in January. We have the debt ceiling to come, geopolitical uncertainty, all the factors that you would know about. And as a consequence, I don't really want to update the guidance, but feel we're solid on 20% with that skewed to the upside. Ken Usdin: Got it. Great. And just as a follow-up then, can you maybe just flesh out a little bit how you're thinking about how the deposit trends go from here, both in an absolute sense? And then perhaps what that mix of DDAs to total looks like from, I think, the 26% that you posted this quarter? Dermot McDonogh: Sure. So, if you kind of take a step back on deposits and think about coming out of the pandemic and as”