As was widely expected, the Federal Reserve cut interest rates, lowering the target range for the federal fund rate by 25-basis points between 4 percent to 4.25 percent. The Federal Open Market Committee, the Fed’s interest rate policy body, has long debated the potential tradeoff inherent in its dual mandate of promoting both price stability and maximum employment. Although inflation remains higher than desirable, the balance has tilted in recent weeks toward lowering interest rates to foster economic growth and, ultimately, more robust job growth. News last week of a substantial downward revision to payroll job data for the 12 months ending in March likely sealed the deal.
According to the FOMC statement, “The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.”
The FOMC voted 11-to-1 in favor of the 25-basis point cut. The lone dissent was cast by newly appointed Fed governor Stephen Miran, who called for a more aggressive reduction of 50-basis points. A cut of that magnitude was not in the cards, but today’s action is not likely to be a one-off. The Fed appears poised to resume the easing stance it pursued in the fourth quarter of last year, with another 50-basis point of cuts expected by the end of the year.
Although driven to a greater extent by market forces, in contrast to the FOMC-controlled federal funds rate, longer-term rates have generally moved lower over the course of 2025. For example, the 10-year U.S. Treasury rate stands just above 4.1 percent at this writing, down from 4.6 percent in May and 4.8 percent in January. Mortgage rates have trended also lower, recently falling to their lowest in three years and sparking a resurgence in loan refinancings.
The Fed Resumes Cutting
Sep 23, 2025
As was widely expected, the Federal Reserve cut interest rates, lowering the target range for the federal fund rate by 25-basis points between 4 percent to 4.25 percent. The Federal Open Market Committee, the Fed’s interest rate policy body,… Read the rest
This Thursday | AFSA Webinar | LOST IN THE MAIL: SOLVING REFUND DELIVERABILITY IN AUTO FINANCE
Sep 23, 2025
BUSINESS PARTNER WEBINAR
LOST IN THE MAIL: SOLVING REFUND DELIVERABILITY IN AUTO FINANCE
SEPTEMBER 25, 2025 AT 2:00 P.M. EST
Refunds may seem routine—but for auto lenders, they’ve become a hidden source of cost, compliance risk, and customer
AFSA Webinar | AUTO FINANCE IN TRANSITION: WINNING IN THE AGE OF DIGITAL, EVS, AND EMBEDDED LENDING
Sep 19, 2025
BUSINESS PARTNER WEBINAR
AUTO FINANCE IN TRANSITION: WINNING IN THE AGE OF DIGITAL, EVS, AND EMBEDDED LENDING
OCTOBER 2, 2025 AT 2:00 P.M. EST
The U.S. auto finance market is shifting fast. With over $1.5 trillion in outstanding loans and EVs
Lending Power: How Consumer Credit is Shaping the U.S. Economy | 2025 Annual Meeting
Sep 18, 2025
Lending Power: How Consumer Credit is Shaping the U.S. Economy
Consumer lending isn’t just a financial service; it’s a cornerstone of U.S. economic performance and touches nearly every part of American life—from buying a car to starting … Read the rest
Protecting or Preventing? How Rate Caps Deny Credit
Sep 17, 2025
A small group of Senate Democrats recently introduced the Protecting Consumers from Unreasonable Credit Rates Act, which would cap fees and interest on consumer loans at an APR of 36 percent. While we appreciate the goal of barring unregulated… Read the rest
AFSA Webinar | LOST IN THE MAIL: SOLVING REFUND DELIVERABILITY IN AUTO FINANCE
Sep 16, 2025
BUSINESS PARTNER WEBINAR
LOST IN THE MAIL: SOLVING REFUND DELIVERABILITY IN AUTO FINANCE
SEPTEMBER 25, 2025 AT 2:00 P.M. EST
Refunds may seem routine—but for auto lenders, they’ve become a hidden source of cost, compliance risk, and customer
THIS THURSDAY | AFSA Webinar | IMPLEMENTATION BEST PRACTICES: HOW TO OPERATIONALIZE PRICING ANALYTICS IN AUTO FINANCE
Sep 16, 2025
BUSINESS PARTNER WEBINAR
IMPLEMENTATION BEST PRACTICES: HOW TO OPERATIONALIZE PRICING ANALYTICS IN AUTO FINANCE
SEPTEMBER 18, 2025 AT 2:00 P.M. EST
End the spreadsheet torment and do away with the lengthy manual rate updates! If you are
Fed Nomination Advances
Sep 11, 2025
The Senate Banking Committee voted to advance Stephen Miran’s nomination to fill a Federal Reserve Board vacancy by a vote of 13-11 along party lines. Republicans hope to vote on his confirmation before the Federal Reserve begins its rate-setting… Read the rest
Driven by Hype: CFA’s Flawed Auto Loan Narrative
Sep 11, 2025
In a time when institutions – from the government agencies to the media to nonprofit groups – have credibility problems, imagine what happens when two of those said institutions, in this case USA Today and the Consumer Federation of America… Read the rest
AFSA Webinar | IMPLEMENTATION BEST PRACTICES: HOW TO OPERATIONALIZE PRICING ANALYTICS IN AUTO FINANCE
Sep 10, 2025
BUSINESS PARTNER WEBINAR
IMPLEMENTATION BEST PRACTICES: HOW TO OPERATIONALIZE PRICING ANALYTICS IN AUTO FINANCE
SEPTEMBER 18, 2025 AT 2:00 P.M. EST
End the spreadsheet torment and do away with the lengthy manual rate updates! If you are