Despite the Federal Reserve's decision to cut interest rates by 50 basis points, Bank of America analysts predict minimal impact on auto loan borrowing costs in the near future. While acknowledging that relief may be on the horizon, they emphasize it will take a series of rate cuts before consumers see significant affordability improvements.
Americans looking to buy a vehicle in the near future might feel hope that the Federal Reserve 's 50-basis-point federal funds rate cut on Wednesday might bring down the interest rate on their next auto loan, but Bank of America analysts say there will not be much of an impact on borrowing costs in the near future.
"Regardless of the magnitude, we highlight that the transmission of a lower fed fund rates to auto loan rates at the consumer level is slightly delayed," the analysts wrote, adding, "consumers would likely start to reap the benefits from rate cuts in 2025+."But it will take a lot more than the single rate cut from the Fed to make a notable difference in auto loan rates.
Auto Loans Federal Reserve Interest Rates Inflation Borrowing Costs
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed Rate Cut Offers Relief For Homebuyers and Could Boost DFW EconomyThe U.S. Federal Reserve has cut its key interest rate by half a percent, marking a significant step in combating inflation that reached a 40-year high. Real estate experts predict this move will bring immediate relief to homebuyers, potentially leading to an economic upswing in the DFW area.
Read more »
Fed starts rate-cut cycle with jumbo cut, but pace of cuts ahead likely slowerFed starts rate-cut cycle with jumbo cut, but pace of cuts ahead likely slower
Read more »
Fed starts rate-cut cycle with jumbo cut, but pace of cuts ahead likely slowerFed starts rate-cut cycle with jumbo cut, but pace of cuts ahead likely slower
Read more »
Factbox-How Wall Street firms see US jobless rate shaping Fed rate cutFactbox-How Wall Street firms see US jobless rate shaping Fed rate cut
Read more »
U.S. Inflation Rate Hits 3-Year Low as Fed Prepares Rate CutThe fifth consecutive annual decline paves the way for the Federal Reserve to cut interest rates next week.
Read more »
Fed’s Daly: Fed needs to cut policy rate because inflation is falling, economy is slowingOn Thursday, San Francisco Federal Reserve President Mary Daly said that the “Fed needs to cut policy rate because inflation is falling and the economy is slowing.” Additional comments On size of Sept Fed rate cut, 'we don't know yet'.
Read more »