Powell’s ‘super careful’ warning on private credit

Fed Chair Jerome Powell says the central bank is watching private credit “super carefully,” the U.S. Treasury is lining up meetings with regulators about risks in this roughly $2 trillion market, and strategists now flag it as a key recession risk. In a world of war‑driven volatility, high oil and “higher‑for‑longer” rates, this shadow lending system can quietly amplify trouble—or quietly boost returns—in ways that matter even if you never bought a private‑credit fund on purpose.