Yesterday’s decision by the Federal Reserve to hold the short-term interest rate steady for the third consecutive meeting at a range of 5.25 to 5.5 percent came as no surprise. Indeed, financial markets had consistently in recent weeks put the odds of a continued pause at more than 99 percent.
What was unexpected was a shift in tone. This was evident in the so-called “dot plots”—the economic and interest rate projections made by the members of the FOMC, the Fed’s rate setting body. Notably, these latest projections expect rate cuts totaling 75 basis points next year and 100 basis points in 2025. The previous set of projections, released in September, anticipated a slower pace of cuts next year and a higher rate at the end of 2025. The “dot plots” were accompanied by slightly less hawkish language in the FOMC’s statement. All told, this suggests the tightening cycle is over.
Of course, the “dot plots” are just projections and the FOMC statement made no definitive policy statements. A resurgence or even a stubborn persistence in inflation would change the outlook dramatically. But for now, it appears as though financial conditions are on track to ease in 2024. This is welcome news in this holiday season for the economy as a whole and for financially strapped households.
Jay Powell Dons His Santa Hat
Dec 14, 2023
Yesterday’s decision by the Federal Reserve to hold the short-term interest rate steady for the third consecutive meeting at a range of 5.25 to 5.5 percent came as no surprise. Indeed, financial markets had consistently in recent weeks put… Read the rest
Marginally Important House Events
Dec 14, 2023
Due to some surprising announcements and actions in the past few weeks, Congressional math will look different after the New Year. As Congress heads into 2024, an election year, here are the most recent changes to the House of Representatives… Read the rest
FTC Releases Shopping Rule in Time for Holidays
Dec 13, 2023
The Federal Trade Commission (FTC) released a final rule related to vehicle shopping yesterday. AFSA and the Consumer Bankers Association (CBA) submitted a comment letter on the proposed rule in September 2022. We are pleased that a few of… Read the rest
CONFIRMED! INDUSTRY KEYNOTE SPEAKER
Dec 07, 2023
AFSA is pleased to announce Robert H. Kurnick, Jr., Vice Chairman of the Penske Corporation and President of Penske Automotive Group, Inc., as the Industry Keynote speaker at its 2024 Vehicle Finance Conference and Expo.
Kurnick, whose career… Read the rest
A Call for CFPB Clarity
Dec 07, 2023
Earlier this week AFSA encouraged other trade organizations to join a letter requesting that President Joe Biden support clear rules of the road in the financial services industry that take into account both the benefits and costs of regulation.… Read the rest
Director Chopra Testifies on Capitol Hill
Dec 05, 2023
Last week, Congress returned from the Thanksgiving holiday recess and CFPB Director Rohit Chopra testified before the House Financial Services and Senate Banking Committees. While most of the conversation centered around supporting … Read the rest
Industry Expertise | Behind the Wheel: Allied Solutions Reflects on Used Car Week
Dec 05, 2023
AFSA’s Industry Expertise allows Business Partners to provide thought leadership and best practices information directly with AFSA member companies. For more information about taking part, contact Dan Bucherer.
Behind the Wheel: Allied… Read the rest
Featured Business Partner | PayNearMe
Dec 01, 2023
The featured Business Partner for the month of December is PayNearMe.
PayNearMe is the modern, reliable payments platform that facilitates debit, credit, ACH and mobile-first payments, including Cash App, PayPal, Venmo, Apple Pay and … Read the rest
NYC Department of Consumer and Worker Protection Comment Letter
Nov 30, 2023
This past week, AFSA’s state government affairs team sent a comment letter to the New York City Department of Consumer and Worker Protection (DCWP) on the updated proposed amendments to its rules relating to debt collectors. In the letter … Read the rest
Financial Fragility Increased in 2023 While Credit Access Decreased
Nov 30, 2023
New survey results from the Federal Reserve Bank of New York highlight recent trends in financial fragility and access to credit. Unfortunately, the news is not good, especially for younger households and those with weaker credit histories.… Read the rest