Fed lifts its rate to 3.75%-4% as new-car prices sit near a record
The central bank raised borrowing costs in September, and its next decision comes Wednesday.
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The Federal Reserve raised its target range for the federal funds rate by a quarter point on September 16. The new range is 3.75% to 4%. The vote was 12 to 0.
The Fed's statement said inflation remains elevated. It described the increase as a step toward getting back to its 2% goal. It said job gains have kept pace with the labor force.
The Fed's next meeting is October 27 and 28. This is a rate decision for the whole economy. It is not a car loan rate. Check your own loan offer for your actual cost.
The price side
Kelley Blue Book says the average new vehicle cost $50,562 in September, close to its record. Automaker incentives averaged $3,359 per vehicle, or 6.6% of the price. A year ago they were 7.3%.
Anyone shopping for a car this fall is facing both numbers: the sticker and the cost of borrowing.