Chair Powell: We're watching private credit “super carefully”

• Private credit is a relatively small part of a very large asset pool, but it is being closely watched.
• The Federal Reserve is monitoring private credit 'super carefully' for potential contagion, losses, or connections to the banking system.
• The Fed is actively engaging with industry participants and investors to understand and monitor the space.

Jerome Powell, Chair of the Federal Reserve, discussed private credit, noting it's a relatively small but growing part of the overall asset pool. He emphasized that the Fed is monitoring this sector 'super carefully' for potential contagion, greater losses, or connections to the banking system, engaging with industry and investors to understand and track developments.