Business News

Federal Reserve cuts its key rate by a quarter-point but envisions fewer reductions next year

WASHINGTON (AP) — The Federal Reserve cut its key interest rate by a quarter-point — its third cut this year — but also signaled that it expects to reduce rates more slowly next year than it previously envisioned, largely because of still-elevated inflation. The Fed’s 19 policymakers projected that they will cut their benchmark rate by a quarter-point just twice in 2025, down from their estimate in September of four rate cuts. Their new projections suggest that consumers may not enjoy much lower rates next year for mortgages, auto loans, credit cards and other forms of borrowing.

The Federal Reserve expects to cut rates more slowly in 2025. Here’s what that could mean for you

NEW YORK (AP) — The Federal Reserve’s third interest rate cut of the year will likely have consequences for debt, savings, auto loans, mortgages and other forms of borrowing by consumers and businesses. But with inflation pressures still elevated and with concern that President-elect Donald Trump’s policies could fuel inflation, the Fed indicated that it’s likely to cut rates more gradually in 2025 than it projected three months ago. The policymakers now envision two rate cuts next year, not the four they predicted back in September. The result is that borrowers who have been hoping for much-lower-rate loans could be disappointed. Loan rates may barely budge if the Fed sticks with its plan to cut its key short-term rate only twice next year.

Supreme Court will hear arguments over the law that could ban TikTok in the US if it’s not sold

WASHINGTON (AP) — The Supreme Court will hear arguments next month over the constitutionality of the federal law that could ban TikTok in the U.S. if its Chinese parent company doesn’t sell it. The justices said Wednesday they will hear arguments Jan. 10 about whether the law impermissibly restricts speech in violation of the First Amendment. The law, enacted in April, set a Jan. 19 deadline for TikTok to be sold or else face a ban in the United States. It’s unclear how quickly a decision might come. The justices could act after the arguments to keep the law from taking effect pending a final ruling.

Stock market today: Wall Street falls after the Federal Reserve hints at just 2 rate cuts for 2025

NEW YORK (AP) — U.S. stock indexes fell after the Federal Reserve signaled it may deliver fewer cuts to interest rates next year than earlier thought. The S&P 500 lost 0.7% to pull a bit further from its all-time high set earlier this month. The Dow Jones Industrial Average lost 242 points, and the Nasdaq composite dropped 0.8%. The Fed cut its main interest rate for the third time this year, but that was widely expected. More attention was on projections Fed officials released about where they see rates heading next year. The median forecast is calling for just two cuts, down from four just three months ago. Treasury yields rose.

What a merger between Nissan and Honda could mean for the automakers and the industry

BANGKOK (AP) — Japanese automakers Nissan Motor Corp. and Honda Motor Co. have confirmed that they are discussing closer collaboration but denied reports they have decided on a merger. Nissan’s share price soared more than 22% after reports citing unnamed sources said it might merge with Honda to form the world’s third largest automaking group. Trading in Nissan’s shares was suspended in Tokyo but then resumed after the companies issued a statement that said they were “considering various possibilities for future collaboration, but no decisions have been made.” Honda’s share price sank 2.3%. Nissan has an alliance with Renault SA that is under review. It recently announced it was slashing 9,000 jobs and cutting its global production by 20%.

How to avoid financial stress during the holiday season

NEW YORK (AP) — The holidays are meant to be a time of celebration with family and friends. But they can also bring pressure to spend money on gifts, gatherings and plane tickets home. With credit card debt rising and prices for many items still high due to inflation, overspending during the holiday season can add to the financial stress many Americans are already experiencing. But there are ways to get through the holidays without spending more than you can afford. These include setting expectations with your family, making a budget, and gifting experiences rather than things.

How you could benefit from tax-loss selling this year

The U.S. market gained more than 25% for the year to date through mid-December 2024. That’s a healthy showing by any measure. It doesn’t seem like it would be a market environment that’s conducive to tax-loss selling. But unless your strategy is to buy only U.S. stocks, you may indeed have opportunities to realize tax losses in your portfolio, which you can use to offset gains elsewhere. That’s because other market segments haven’t performed nearly as well. Among the most fruitful places in your portfolio to look for tax-loss candidates are long-term bonds and bond funds and individual stocks.

CNN says its report on a freed Syrian prisoner is not what it initially believed

A report by CNN’s Clarissa Ward about a freed Syrian prisoner provided some dramatic scenes, but the network has since found that it apparently wasn’t all that it appeared. Ward and a prison guard came upon a man in a padlocked cell hidden under a blanket who said he was a civilian that had been arrested three months ago, and he appeared terrified and grateful to be freed. But CNN learned days later that the man apparently gave the network a false identity. The question for CNN is whether it should have done more reporting to verify the story before it went on the air, or if that was even possible in a chaotic sitation.

Barcelona subway recycles energy from braking into power to charge electric cars

BARCELONA, Spain (AP) — Barcelona’s subway system is using regenerative braking to help power both its convoys but also recharge electric cars at street level. Sixteen subway stations in the Spanish city are equipped so that the energy from the regenerative braking system on the train can also help power chargers for electric cars. Making better use of energy has become a key pillar of reducing rising global temperatures. Countries at last year’s United Nations climate talks and the members of the Group of 20 agreed to double energy efficiency by 2030.

MacKenzie Scott gives rare third gift to medical debt relief group

MacKenzie Scott continues to make medical debt relief a priority in her mysterious giving. This week, Undue Medical Debt, formerly RIP Medical Debt, announced it had received a rare third gift — $50 million — from the billionaire philanthropist, signaling her satisfaction with the group’s efforts to purchase medical debt in bulk from hospitals and debt collectors. Scott has donated a total of $130 million to the organization since 2020. Few organizations have received more than one gift from Scott. Nearly 100 million people are unable to pay their medical bills, according to Third Way, a left-leaning national think tank.