Ep. 18: Fed Policy Updates, Wholesale Trends and Regulatory Changes

The Auto Market Brief – Ep. #18

In this Episode

Key Takeaways

Fed Signals and Consumer Impact:
Jeremy breaks down the Federal Reserve’s latest rate decision, what surprised markets in the Fed’s economic projections, and how policymakers continue balancing inflation concerns against a resilient economy. The discussion also explores how higher interest rates affect vehicle affordability and how perceptions of higher borrowing costs can affect vehicle purchase decisions.

Wholesale Market Trends and Diesel Price Pressures:
The conversation also explores the wholesale market, where the latest Manheim Used Vehicle Value Index shows prices softening modestly year over year. Jeremy explains emerging depreciation patterns, including the outsized impact of one-year-old vehicles and how elevated fuel costs are influencing full-size trucks, SUVs, and diesel-powered vehicles across the market.

Financial Assets, Consumer Wealth and Market Resilience:
New research on the growth of financial assets and the increasing role of the wealth effect in supporting consumer spending. The discussion highlights how rising asset values, retirement demographics, and changing buyer profiles may be helping explain the resilience of the automotive market despite affordability challenges and economic uncertainty.

The episode also covers new FTC pricing guidance for dealers, finalized IRS rules surrounding auto loan interest deductions, minimum advertised pricing developments, and the latest legislative effort to require AM radio in new vehicles.