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Stress in private credit could spark 'psychological contagion,' Fed's Barr tells Bloomberg News

ReutersMay 3, 2026 2:26 PM
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- U.S. Federal Reserve Governor Michael Barr said stress in private credit could spark "psychological contagion" leading to a broader credit crunch, Bloomberg News reported on Sunday.

While direct links between banks and private credit do not yet appear "super worrisome," there were other areas of concern such as the insurance sector's overlaps with private lenders, Barr said in an interview with Bloomberg News.

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