Fed Chair Powell (Q&A): Reiterates the Fed is watching the market very closely and do not see contagion from private credit right now; does not have the makings of a broader systemic event right now

Fed Chair Powell's remarks suggest a cautious yet stabilizing view of the current market environment, indicating that the Fed does not foresee immediate risks from private credit leading to systemic issues. This alignment signals a hawkish sentiment towards maintaining a close watch without triggering fears of contagion, which could influence market expectations for rates and potentially support the USD in the near term.