Her words matter now because the Fed is in the middle of redrawing its version of international capital rules that have already been adopted by other countries. “The growth of private credit tells me that the regulated banking system has been too tightly constrained,” Bessent told Michael Milken on stage at the former financier’s conference. The total money managed by private equity and private credit has mushroomed to more than US$11 trillion from less than US$3 trillion globally, according to the Bank of England. In January, Jamie Dimon, the outspoken chief executive officer of JPMorgan Chase & Co, plainly described the growing influence of private credit and insurers in lending as regulatory arbitrage. A rush of private lending to highly valued software companies looks like turning sour with AI companies potentially upending their businesses.

Source: The Star March 04, 2026 00:48 UTC