Wondering from you, Scott, what are the implications here for interest rates and what we might see at these upcoming fall FOMC meetings? And for investors, could this mean some headwinds or challenges for investors going forward?

Yeah, there's a lot to unpack there.

Anyone hoping for Chairman Warsh that he would grade inflation on a curve and accept 3% as the new 2%, they were basically told to go take a hike in the Tetons.

With the personal consumption expenditure index growth hovering in the mid to high 3% range, he made it clear that 2% is the target.

It's fixed.

Progress so far has been modest, and there is quote-unquote work to do, which means that the next rate move is probably up, not down.

Now, Fidelity's asset allocation research team is projecting inflation above 3% into early 2027 amid a mid-cycle expansion.

And how are you and your team thinking about all of this aggressive AI spending as well and how it can impact a multi-asset class portfolio?

What are you seeing? Absolutely.

Sure, absolutely.

So coming into 2026, we were expecting that performance would probably broaden out away from the AI pure plays, like the hyperscalers.

And by and large, that's what's happened, but not necessarily for the reasons that we were expecting, okay? So for example, one of the top performing asset classes are energy stocks in the first half of this year.

Why were they outperforming? Really based on an exogenous event that happened in the Middle East, right? The conflict in spiking oil prices.

Another similar situation happened with emerging markets.

Emerging markets outperform the rest of the world.

Can you talk about what, first of all, the market impact might be from these IPOs? And also for investors, how is your team thinking about the role these IPOs might play in a portfolio, if any?

But Scott, is it safe to say now that the market has moved past this?

Well, yeah.

I mean, just as you noted, Heather, the stock market has been on a tear.

It's been trading at the highest levels we've seen.

So sure, oil is the lifeblood of economies, but it's corporate profits, massive capital expenditures on AI and resilient consumer spending that have really fueled this rally.

Now, nobody knows how this conflict ends, but if you wanna get the market's best guess, just look at oil futures.

Right now, crude is trading around $90 a barrel, maybe $92.

Mm.