US Federal Reserve Chair Jerome Powell said the central bank is closely watching the private credit sector for signs of stress, but currently does not see threats that could trigger a wider financial system crisis, according to a report by Reuters.
Speaking at Harvard University, Powell emphasised that while losses may occur in certain parts of the opaque lending market, regulators do not expect these issues to become systemic.
He noted that private credit remains a relatively small portion of the overall financial system, and the Fed is monitoring exposures carefully in coordination with banks and industry participants.
