Fed holds interest rates steady as high borrowing costs continue to squeeze car buyers

On the Dash: Higher interest rates continue to limit affordability and shrink the pool of new-vehicle buyers, with Cox Automotive data showing more than 3 in 10 dealers already citing rates as a drag on business. Elevated financing costs make widespread 0% financing offers less likely for automakers, pushing dealers toward targeted incentives instead. New-vehicle demand is holding up among affluent buyers, but the divide is widening as middle- and lower-income shoppers move toward used vehicles or delay purchases. The Federal Reserve decided to keep interest rates unchanged on Wednesday as policymakers considered ongoing inflation risks, particularly the impact of rising energy prices related to the conflict in Iran. Economists…

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