Monroe Capital’s Ted Koenig Calls for Federal Reserve Independence as Markets Weigh Rate Path

September 17, 2025 at 15:50 PM EDT

Monroe Capital LLC (“Monroe”) announced today that Chairman and CEO Ted Koenig is amplifying 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.

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Private Credit Leader Ted Koenig Shares Outlook on Rates and Middle-Market Lending

With the Federal Reserve scheduled to issue its policy statement on September 17, 2025, market consensus points 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.

About Monroe Capital

Monroe Capital LLC (“Monroe”) is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, alternative credit solutions, structured credit, real estate and equity. Since 2004, the firm has been successfully providing capital solutions to clients in the U.S. and Canada. Monroe prides itself on being a value-added and user-friendly partner to business owners, management, and both private equity and independent sponsors. Monroe’s platform offers a wide variety of investment products for both institutional and high net worth investors with a focus on generating high quality “alpha” returns irrespective of business or economic cycles. The firm is headquartered in Chicago and has 12 locations throughout the United States, Middle East, Asia and Australia.

Monroe has been recognized by both its peers and investors with various awards including DealCatalyst as the 2025 Most Innovative Private Credit CLO Manager of the Year; Private Debt Investor as the 2024 Lower Mid-Market Lender of the Year, Americas and 2023 Lower Mid-Market Lender of the Decade; Inc.’s 2024 Founder-Friendly Investors List; Global M&A Network as the 2024 Lower Mid-Markets Lender of the Year, Americas; Korean Economic Daily as the 2022 Best Performance in Private Debt – Mid Cap; Creditflux as the 2021 Best U.S. Direct Lending Fund; and Pension Bridge as the 2020 Private Credit Strategy of the Year. For more information and important disclaimers, please visit www.monroecap.com.