We have officially turned the page into a new year and a new administration. Lessons learned from 2020 are still fresh, and there appears to be plenty of momentum on various financial fronts that lend to a positive outlook. Here are some key points to consider.
Key Points
The Federal Reserve has indicated it plans to keep interest rates at near zero for the next two to three years. Pending a third stimulus package, improved employment numbers, heightened consumer confidence, and the pace of the recovery, it’s possible that we will see auto lending growth as early as Q2.
According to a recent TransUnion 2021 consumer credit forecast, the financial institution found that consumer access to credit cards and personal loans is expected to rebound through the first half of 2021 while new auto loans will shift toward lower risk consumers. Despite potential obstacles to the consumer credit market, TransUnion foresees positive trends buoyed by expected improvements in macroeconomic factors such as unemployment and GDP.