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Newsweek featured analysis from Columbia Business School’s Professor Brett House on how stress in the auto financing market may signal broader vulnerabilities in the U.S. economy. House explained that rising delinquencies, higher interest rates, and tighter lending conditions in auto loans disproportionately affect lower-income households, revealing early signs of consumer strain. He noted that because auto financing touches a wide swath of American borrowers, deteriorating conditions can serve as an important macroeconomic indicator—one that policymakers and markets should monitor closely as they assess the durability of consumer spending and economic growth.
