Carlyle's Thomas Says Time for Fed to Retire Restrictive Language

The video discusses the perceived restrictiveness of economic policies, highlighting that despite a high real fed funds rate, GDP and productivity growth remain strong. It suggests retiring the language of restrictiveness as it may mislead market participants. The video also examines the yield curve, noting that the market is repricing the neutral rate, with a modestly positive term premium reflecting a shift from past expectations.

In what ways might changing the rhetoric around economic restrictiveness be beneficial?

What does the term premium indicate about market expectations for future interest rates?