In January, the Bidenomics hangover weighed on consumers. New data showed that car owners defaulted on their monthly payments at the highest rate in over three decades.
Bloomberg reports that the share of subprime auto borrowers at least 60 days past due hit 6.56%, the highest percentage since Fitch Ratings began collecting data in 1994.
The most recent data from the Federal Reserve Bank of New York shows that the percentage of auto loans transitioning into serious delinquency—defined as payments overdue by 90 days or more—increased to 3% in the final quarter of 2024, marking the highest level since 2010.
On Tuesday night, Trump addressed a joint session of Congress, informing the nation:
“We inherited from the last administration an economic catastrophe and an inflation nightmare. Their policies drove up energy prices, pushed up grocery costs and drove the necessities of life out of reach for millions and millions of Americans.”
The Trump team is moving swiftly to stabilize the economy amid the worsening Bidenomics hangover while leveraging tariffs as a negotiation tool to advance the ‘America First’ agenda.
It’s a delicate balance, for sure…
Commerce Secretary Howard Lutnick said Wednesday…
*LUTNICK: INTEREST RATES WILL COME SMASHING DOWN
just need a recession
— zerohedge (@zerohedge) March 5, 2025
Borrowing costs for used cars still linger at multi-decade highs of around 8.36%.
If stabilization is all about lowering interest rates…
Then, more tariff wars = growth scare = rate traders pricing in more interest rate cuts by year-end.
Loading…
