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00:00Just three weeks ago, Priya, we were talking about no landing, maybe up from their door to 50 basis points, maybe having a look at 6 percent on Fed funds just three weeks ago. Now, who is to say we won't be back at that point in another two, three weeks time if this banking crisis fades? So I think it's interesting you say feed, so maybe some other financial stress issues. The liquidity crisis the bank runs that can stop with the capital issues that the U.S. banking system face. Does that go away? And I would argue it doesn't. I think you opened a Pandora's box that a massive underlies losses sitting on bank balance sheets. If banks are having to pay up for deposits, that net interest margin is going to be under pressure. So I think we have to recognize that the banking system is going to have to deliver either they are going to have to shed assets or raise capital or some combination of both. And that's going to impact lending standards. You know, I think it is going to have an impact on the economy. But when and where does it show up? I don't think it shows up in the labor market, may not show up in inflation for a while. So I think what we have to get used to will be a Fed. That's going to sound a little tone deaf because they're going to look at their dual mandate. They're going to potentially hike in May. They might pause. But I think to justify these rate cuts, you have to see the tightening in lending standards show up in the data. And I think the Fed is in a very different position now than they were during Polito during 2008, where they had the luxury to be preemptive. They don't have that luxury. So, you know, I think things can absolutely feed the sentiment in the market can improve. But if lending standards tighten at the same time as that savings buffer, the consumer savings buffer that we've talked about so many times that has provided that cushion to the consumer, that's savings buffer is running out. This is exactly when the banks should be making loans. And if the banks actually stepping back, I think each ad stood on monetary tightening. So I think the market is doing a lot of that work for the Fed. But the Fed is looking at data that is not going to show that. So I think they can force we they can absolutely pause after one or two more hikes. But I think then the market will have to get used to a Fed. That's not being responsive enough. And that's why I think warning the front Benjamin's looks risky because it's a view on when does the Fed start to cut on the long end, because this is absolutely going to result in a hard landing. It's just when that happens and when can the Fed respond? I think that is extremely difficult to sort of, you know, calibrate. Do you sense Woods?

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Bank Crisis Has Opened Pandora's Box: TD's Misra

"There are massive unrealized losses sitting on bank balance sheets," TD Securities Global Head of Rates Strategy Priya Misra says. Speaking during an interview with Jonathan Ferro on "Bloomberg The Open," Misra advises investors to own the long end of the curve. (Source: Bloomberg)

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