agent Entrepreneur logo
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

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...