Auto Market Reflects Fed’s Dilemma – Wall Street Journal

Few parts of the U.S. economy better illustrate the benefits and perils of the Federal Reserve’s near-zero interest-rate policies than the auto industry, and few will be as exposed to the fallout if central bank officials decide this week to end America’s seven-year era of rock-bottom borrowing costs.

Auto debt owed by U.S. households in the second quarter this year rose above $1 trillion for the first time, fueling car purchases and…