“So, when you put that together, all else equal, the drop in the weighted average IORB, which is about 22 basis points, should produce a notable headwind in our NII ex. Markets.”

In context

“Usdin: Yeah. And just one question on the NII ex. Markets holding at $90 billion. Can you just walk us through the puts and takes of just what's the new curve you're using, which also is subject to change every day? And what might have been some of the positive offsets to if you put in more expected cuts than you had before? Thanks. Jeremy Barnum: Yeah, that's a good question, Ken, and you're right. So, if you remember, last quarter, we said that we had one cut in the curve. I think latest curve has something like three cuts. And so, we've talked a lot, obviously, about how we're asset-sensitive. You now see our EaR disclosed in the supplement and probably our empirical EaR is a little bit higher than our modeled EaR as a result of the relatively lower-than-modeled rates paid in consumer. So, when you put that together, all else equal, the drop in the weighted average IORB, which is about 22 basis points, should produce a notable headwind in our NII ex. Markets. Jamie Dimon: In the curve basically. Jeremy Barnum: Yeah. That's basically -- that's just mechanically... Jamie Dimon: Guaranteed not to happen. Jeremy Barnum: As Ken said. So, that's mechanically just flowing through the curve. So, yeah, your question is that given that why are you not revising down? And the answer to that is that across all the puts and takes actually, our number is a tiny bit lower. It's just not enough to warrant a change in the outlook, but we do have some offsets. So, we have some balance effects that are favorable. You will have noted that I talked about higher wholesale deposit balances, for example. We see beta outperforming in a couple of different places in CDs and in wholesale. The other thing is that you'll recall we talked before about having a placeholder i”