Bessent: I Understand If the Fed Needs to Delay Rate Cuts; Private Credit Poses No Systemic Risk

U.S. Treasury Secretary Bessent expressed understanding of the Federal Reserve’s cautious stance on rate cuts while forecasting that sustained declines in core inflation will eventually create conditions for deeper rate reductions. On the 15th, Bessent made these remarks at a media event. He stated: "If they need to wait for their own reasons before cutting rates, I understand." This represents one of the relatively moderate statements from senior Trump administration officials regarding monetary policy recently, contrasting somewhat with previous White House pressure on the Fed. He further predicted that once core inflation shows a clear decline, the Fed "will then be able to take more action on the other side," suggesting that the window for rate cuts may open as inflation data improves. At the same time, he stated that the Treasury's work so far "shows no systemic issues in the private credit sector." He cited Jamie Dimon's shift in position yesterday, noting, "Just look at the data—the scale of (private credit) is not enough to constitute a systemic threat." Bessent: Private Credit Poses No Systemic Risk Bessent also stated that the private credit industry does not pose a systemic risk, citing Jamie Dimon, CEO of JPMorgan Chase, and his recent shift in position: "Just look at the data—the scale of (private credit) is not enough to constitute a systemic threat." Dimon had previously used the term "cockroaches" to imply opaque risks within the private credit industry, adopting a cautious tone. According to Bessent, Dimon changed his stance yesterday, concluding from the data that the current scale of private credit is insufficient to pose a systemic threat to the overall financial system.