The American Financial Services Association (AFSA) has emphasized the impact of Federal Reserve decisions on consumer credit costs, particularly for vehicle purchases. The association said that confirming Stephen Miran to the Federal Reserve Board is crucial for policy certainty. This announcement was made on AFSA's website.
According to recent employment data from August 2025, the U.S. added only 22,000 nonfarm payroll jobs, a figure much lower than many analysts had anticipated. The unemployment rate remained steady at 4.3 percent, indicating a labor market that may be cooling. The Bureau of Labor Statistics reported gains in sectors such as health care, but these were offset by losses in mining, government, and manufacturing, complicating the outlook for credit-sensitive sectors.
Inflation continues to pose challenges for consumers and businesses even as some economic indicators show signs of softening. In August 2025, the Consumer Price Index (CPI) increased by 2.9% year-over-year, with core inflation—excluding food and energy—remaining high. These levels have intensified pressure on the Federal Reserve to balance inflation control with growth concerns. Higher inflation typically leads to increased interest rates, which subsequently raise the cost of credit for consumers purchasing goods like cars and homes.
Stephen I. Miran officially assumed his role as a member of the Board of Governors of the Federal Reserve System on September 16, 2025, filling an unexpired term ending January 31, 2026. Before this appointment, Miran served as chair of the Council of Economic Advisers under President Trump and held positions in both the private sector and think tanks. His experience in economic and financial policy makes his views on inflation, rate cuts, and credit availability closely watched by businesses and consumers alike.
The American Financial Services Association represents entities offering a wide range of consumer credit products including vehicle finance, personal and installment lending, and credit cards. Its members depend on stable monetary policy because changes in interest rates set by the Federal Reserve directly affect their cost of capital and the interest rates they offer customers. According to AFSA’s mission statements and public materials, the organization advocates for balancing inflation control with maintaining credit access while ensuring businesses can plan ahead and manage risk.