Digest

Federal Reserve cuts key rate by a quarter-point

WASHINGTON — The Federal Reserve cut its key interest rate Wednesday by a quarter-point to 4.3% — its third cut this year — but also signaled 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 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 consumers might not enjoy much lower rates next year for mortgages, auto loans, credit cards and other forms of borrowing.

Court to hear arguments over possible TikTok ban

WASHINGTON — The Supreme Court said Wednesday it will hear arguments next month over the constitutionality of the federal law that could ban TikTok in the United States if its Chinese parent company doesn't sell it.

The justices 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. The popular social media platform has more than 170 million users in the U.S.

Lawyers for the company and China-based parent ByteDance urged the justices to step in before Jan. 19. The high court also will hear arguments from content creators who rely on the platform for income and some TikTok users.

BRIEFLY

CVS: The Justice Department unsealed a civil complaint Wednesday alleging CVS Pharmacy Inc. and various subsidiaries filled "unlawful" prescriptions involving opioids in violation of the federal Controlled Substances Act.

CONGRESS: The Senate passed a $895 billion defense bill Wednesday that authorizes significant pay raises for junior enlisted service members while stripping coverage of transgender medical treatments for children of military members. The bill passed the House last week.

BIRD FLU: Health officials on Wednesday confirmed the first known severe illness in the U.S. caused by bird flu in Louisiana, while California Gov. Gavin Newsom declared a state of emergency as the virus rampages through dairy cattle in that state.

CLIMATE: Montana's Supreme Court on Wednesday upheld a landmark climate ruling that said the state was violating residents' constitutional right to a clean environment by permitting oil, gas and coal projects without regard for global warming.

GIULIANI: Federal Judge Lewis J. Liman in Manhattan on Wednesday ordered Rudy Giuliani to appear in court Jan. 3 to face claims that he should be held in contempt for failing to turn over assets to two Georgia election poll workers who won a $148 million defamation judgment against him.

SOUTH CAROLINA: The Supreme Court said Wednesday it will consider South Carolina's move to cut off Medicaid funding to Planned Parenthood, weighing the state's appeal of a lower-court ruling focused on whether Medicaid patients can sue over their right to choose their own qualified provider.

— Associated Press