Federal Reserve Chairman Jerome Powell announced a hold on planned interest-rate hikes in a press conference Wednesday.
WASHINGTON — Federal Reserve Chairman Jerome Powell said “the case for raising rates has weakened somewhat” in a press conference that followed the Fed’s first rate-setting meeting of 2019, confirming reports that two increases planned for this year would be suspended. He stressed that domestic economic indicators, including unemployment, remain strong.
“We believe we can best support the economy by being patient and evaluating the outlook before making any future adjustment to policy,” Powell told reporters, citing numerous, mostly global concerns, including U.S.-China trade tensions, the Brexit debacle, and a general economic slowdown in Europe and Asia.
Powell said the 35-day federal government shutdown will leave “some sort of imprint” on U.S. gross domestic product but won’t have a permanent effect. The Congressional Budget Office this week estimated the shutdown will result in a $3 billion loss.
Powell denied the Fed’s decision was swayed by overt pressure from President Donald Trump to cancel the hikes.
The federal funds rate, which influences the cost of auto loans and other forms of consumer borrowing, remains at a range of 2.25% to 2.5% following seven incremental hikes since 2015. Jim Bianco of Bianco Research LLC told Bloomberg that Powell is “definitely listening to markets” and could be persuaded to reverse, rather than hold, course.
The Fed’s next adjustment “will probably be a cut at this point, probably later this year, like December or the first quarter of 2020,” Bianco said.
Please enter a comment.
Please enter your name.
Please enter a valid email address.
Please validate that you are human.
CareGard Warranty Services/AFG Companies announced the addition or promotion of four executives and plans to expand facilities and put a new emphasis on income development for dealers and agents.
Cindy Allen and David Trinder reflect on the 10-year courtship that led to the merger of F&I Administration Solutions LLC and StoneEagle Inc. and offer an inside look at the transaction, the discussions that preceded it, and the new company’s future plans.
Twenty-year industry veteran Pankaj Singh has been named chief technology officer at National Auto Care, where he will lead the company’s IT and project management teams.
Despite escalating new-car prices and plateauing sales, NADA analysts report little change to American dealers’ per-copy average, penetration rates, and F&I income as a percentage of gross profit in 2018.
Edmunds says the average APR for a U.S. new-vehicle loan was 6.36% in March, putting dealers and consumers on the cusp of a ‘dramatic shift’ toward the used-car market.
The global market for dealer management systems will hit $10.1 billion by 2025, a ‘healthy’ projected growth rate of 8%, according to the latest forecast by Research Reports.
Acquisitions helped #1 Cochran Automotive and Morgan Auto improve their positions in Automotive News’ most recent list of the nation’s biggest auto retailers, but the top 10 remain entrenched.
October’s P&A Leadership Summit included “The Inside Scoop,” a panel session staffed by leading executives and focused on the future of protection products — including how, where, and when they are sold.
Protective Asset Protection has released a new, free infographic that illustrates the pressing need for dealers to consider alternatives to NCFC structures.
FICO’s second annual survey of auto finance customers finds the United States and Canada atop the dealer-arranged financing rankings even as the number of auto loans originated online jumped from 5% to 13% year-over-year.
© 2019 P&A Magazine. All Rights Reserved.
