Dealers and consumers will have to wait for relief from higher interest rates as Federal Reserve leaders opted to leave the Fed benchmark rate unchanged. Following the Federal Open Market Committee’s meeting on June 11 and 12, the central bank’s federal funds rate target remains between 5.25% and 5.5%—where it has stood since July 2023. Despite improving inflation data, the Fed is considering only one rate cut in 2024.
The next Fed rate meeting will be held on July 30 and 31, with subsequent meetings scheduled for September, November, and December. Cox Automotive Chief Economist Jonathan Smoke expressed skepticism about further rate increases this year. The Fed’s decisions have significant implications for consumers taking out auto loans, as interest rates directly affect the rates they receive.
Read Article