Investor Presentaiton

Overview of Current Economic Conditions Real interest rates are at clearly restrictive levels (~250bps across the yield curve) Inflation is showing encouraging signs of moderating from peak levels On a trailing three-month average basis, Core CPI is run-rating ~3% & Core PCE ~2% Supply-demand imbalance in the labor market is improving ■ Slowing wage growth should point to further easing in core services inflation Economic growth has been resilient; however, growth is likely to slow going forward Income growth is decelerating; excess household savings are being depleted; consumer loan supply & demand are weakening with deteriorating credit quality Low-income consumer is under stress and facing fiscal headwinds from the end of pandemic- era relief programs and student loan repayments Recent rapid rise in long-end rates will further tighten financial conditions ■ Beginning to see early signs of slowing consumer spend Emerging risks: heightened geopolitical uncertainty, financial system instability We believe the current macroeconomic backdrop calls for more balanced monetary policy that is attentive to two-sided risks to growth and inflation 2

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