P&A Providers & Administrators
MenuMENU
SearchSEARCH

Rate Hikes on Hold as Fed Throttles Back

Chairman Jerome Powell confirmed the Federal Reserve is reconsidering two interest-rate hikes planned for 2019 due to a ‘less favorable outlook’ for the global economy.

Tariq Kamal
Tariq KamalFormer Associate Publisher
Read Tariq's Posts
January 31, 2019
Rate Hikes on Hold as Fed Throttles Back

Federal Reserve Chairman Jerome Powell announced a hold on planned interest-rate hikes in a press conference Wednesday.

2 min to read


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.

Ad Loading...

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.

“My only motivation is to do the right thing for the economy and the American people. That’s it,” said Powell. “The situation calls for patience, I think it does. That stance of policy is appropriate. We see these uncertainties. We see a time where we have the luxury of being able to wait.”

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.

Topics:Industry

Originally posted on F&I and Showroom

More Industry

Two businessmen shaking hands in front of a vehicle
Industryby Hannah MitchellSeptember 8, 2026

First-Half Dealership Deals Up

Buy-sell activity shows that acquirers are looking for value and scale as many retailers seek to leave an increasingly competitive and complex market, Kerrigan Advisors reports.

Read More →
Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Ad Loading...
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
Ad Loading...
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Ad Loading...
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →