The Fed's take on private credit just shifted. According to recent comments from Hammack, the private credit market hasn't ballooned enough yet to pose systemic risks to the financial system.

This is worth unpacking. Private credit—basically lending outside traditional banking channels—has been growing, sure. But Hammack's framing suggests it's still manageable from a macro stability perspective. The market just isn't there at scale yet to become a domino effect trigger.

What does this mean for crypto investors watching macro trends? It signals the Fed isn't losing sleep over private credit as an immediate threat. That's actually bullish for market sentiment because it removes one potential policy headwind. When regulators aren't panicking about systemic collapse, it buys space for risk assets to breathe.

That said, keep an eye on the growth trajectory. "Not large enough now" is qualifier language—the conversation could flip if private credit balloons too fast. The Fed's monitoring stance here matters for understanding what level of economic friction might be tolerable going forward.