On September 17, 2025, Monroe Capital announced that Chairman and CEO Ted Koenig amplified his perspective on Federal Reserve independence and the prudent path for interest-rate adjustments as attention to monetary policy intensifies across markets. Multiple national outlets have sought commentary, reflecting broad demand for clear, apolitical guidance on the outlook.

With the Federal Reserve scheduled to issue its policy statement on September 17, 2025, market consensus pointed to a potential quarter-point reduction in the federal funds rate. Koenig emphasized that the long-term credibility of U.S. markets depends on an independent central bank and measured, data-led decision-making.

“An independent Federal Reserve is the backbone of market credibility. Policy should move on data, not politics, to anchor investor confidence and long-term growth,” said Koenig. “If cuts are warranted, they should be incremental and telegraphed, allowing markets to adjust without destabilizing risk premiums.”

Koenig noted that while headline inflation has moderated from prior peaks, year-over-year readings remain above target and tariff pass-through effects continue to filter through supply chains. “Moving too quickly risks rekindling inflation and lifting long-term borrowing costs. A steady approach protects the dollar’s reserve status, supports capital formation, and sustains market trust,” he added.

From Monroe’s vantage point in private credit, predictable policy supports healthy underwriting, disciplined pricing, and reliable access to capital for middle-market borrowers. A modest cut could ease financing conditions at the margin, but the firm expects lender selectivity to remain elevated, with a continued focus on cash flow durability, covenant protection, and liquidity buffers. Regardless of today’s outcome, Monroe will continue to price risk conservatively and align structures with sector-specific fundamentals.

Monroe will share post-decision observations on its owned channels to help borrowers, sponsors, and investors interpret the policy path and implications for deal activity, valuations, and refinancing windows.