Politics

Government funding plan collapses after threats from Trump and Musk as shutdown looms

Tom Williams/CQ Roll Call/Bloomberg via Getty Images

(WASHINGTON) — The stopgap spending plan negotiated between House Republicans and Democrats to avoid a government shutdown appears to be dead two days before the deadline after it was condemned by President-elect Donald Trump and his ally Elon Musk.

Johnson’s original plan called for extending government spending at current levels until March and added other provisions like relief for disaster victims and farmers and a pay raise for members of Congress.

In a joint statement Wednesday afternoon, Trump and Vice President-elect JD Vance called on Congress to “pass a streamlined spending bill that doesn’t give [Senate Majority Leader] Chuck Schumer and the Democrats everything they want.”

“Republicans must GET SMART and TOUGH. If Democrats threaten to shut down the government unless we give them everything they want, then CALL THEIR BLUFF. It is Schumer and [President Joe] Biden who are holding up aid to our farmers and disaster relief,” Trump and Vance said.

Later Wednesday evening, Trump threatened any Republican in the House who voted for a clean bill.

“Any Republican that would be so stupid as to do this should, and will, be Primaried,” he posted on his Truth Social platform. “Everything should be done, and fully negotiated, prior to my taking Office on January 20th, 2025.”

In another post, Trump also pushed Republicans to deal with the debt limit before he takes office, saying if they don’t, “he’ll have to ‘fight ’til the end’ with Democrats.”

“This is a nasty TRAP set in place by the Radical Left Democrats!” he wrote. “They are looking to embarrass us in June when [the debt limit] comes up for a Vote. The people that extended it, from September 28th to June 1st, should be ashamed of themselves.”

Scalise says ‘hopefully tomorrow’ the House will have deal
Congress faces a deadline Friday, when the current government funding extension expires, to pass a new bill before a government shutdown kicks in.

House Majority Leader Steve Scalise, R-La., told reporters late Wednesday that negotiations on government funding remained ongoing after a “productive” late-night meeting in Speaker Mike Johnson’s office.

“We are going to continue to work through the night to the morning to get an agreement we can bring to the floor,” Scalise said, adding “hopefully tomorrow” the House can “get it resolved.”

Among those in the speaker’s office for negotiations was Vance, who told reporters the conversation was “productive,” adding, “I think we will be able to solve some problems here.”

In his remarks to reporters, Scalise said Trump “wants to start the presidency on a sound footing, and we want him to as well. And I think that’s one of the things we’re all focused on,” he said.

Scalise added, “There’s a lot we want to get done starting in January. But obviously we’ve got to get through this first. And we are going to get it resolved.”

Asked if the debt limit is going to be part of any new agreement, as Trump has called for, Scalise said: “We are not there yet. We are still having conversations with our members with a lot of other folks too just to make sure that everybody is on the same page. But we are still talking about some good ideas that will address some of the issues our members raised today. And then make sure we take care of the disaster victims.”

What Elon Musk said

Earlier Wednesday, Musk came out against the bill, going so far as to threaten lawmakers who voted for it.

After posting on X that “This bill should not pass,” Musk escalated his rhetoric, warning that “any member of the House or Senate who votes for this outrageous spending bill deserves to be voted out in 2 years!”

“Please call your elected representatives right away to tell them how you feel! They are trying to get this passed today while no one is paying attention,” he implored his over 200 million followers.

He later posted that “No bills should be passed Congress until Jan 20, when @realDonaldTrump takes office.”

Republican leaders had been discussing a clean short-term funding bill, but specifics are unclear, sources told ABC News. This comes less than a day after Republicans unveiled the legislative text that was the product of bipartisan and bicameral negotiations.

What Democrats are saying

House Democratic leader Hakeem Jeffries signaled Democrats were not inclined to vote for a clean bill.

“An agreement is an agreement,” Jeffries told reporters.

“House Republicans have been ordered to shut down the government and hurt everyday Americans all across this country,” he said. “House Republicans will now own any harm that is visited upon the American people that results from a government shutdown or worse.”

House Speaker Mike Johnson was asked about Musk’s post during an interview on “Fox & Friends” on Wednesday morning. He appeared to not worry about Musk’s post influencing the ability of the funding bill to get through both chambers ahead of a partial government shutdown deadline at the end of the day Friday.

“I was communicating with Elon last night. Elon and Vivek [Ramaswamy] and I are on a text chain together and I was explaining to them the background of this. Vivek and I talked last night about midnight, and he said ‘look I get it.’ He said, ‘We understand you’re in an impossible position,'” Johnson said.

Johnson said Musk and Ramaswamy, the two DOGE (Department of Government Efficiency) leaders, are aware of the tough spot the speaker is in with a slim majority and Democratic control of the Senate and White House. DOGE is an outside-of-government (or private) operation.

“We gotta get this done because here’s the key. By doing this, we are clearing the decks, and we are setting up for Trump to come in roaring back with the American first agenda. That’s what we are going to run with gusto beginning January 3 when we start the new Congress,” he said.

Johnson, whose speakership has been characterized by beating back criticism from his far-right flank, had originally promised a clean bill that would solely extend current levels of government funding to prevent a shutdown. However, natural disasters and headwinds for farmers, necessitated additional federal spending.

In the end, the bill included $100 billion for recovery efforts from Hurricanes Helene and Milton and another $10 billion for economic assistance for farmers.

Johnson at an earlier press conference said his hands were tied after “acts of God” necessitated additional money.

“It was intended to be, and it was, until recent days, a very simple, very clean [continuing resolution], stopgap funding measure to get us into next year when we have unified government,” he said. “We had these massive hurricanes in the late fall, Helene and Milton, and other disasters. We have to make sure that the Americans that were devastated by these hurricanes get the relief they need.”

Still, Republican spending hawks cried foul, accusing Johnson of stocking the bill with new spending without any way to pay for it and keeping the bill’s creation behind closed doors.

“We’re just fundamentally unserious about spending. And as long as you got a blank check, you can’t shrink the government. If you can’t shrink the government, you can’t live free,” Texas Rep. Chip Roy said.

Musk, too, mocked the size of the bill.

“Ever seen a bigger piece of pork?” he posted on X, along with a picture of the bill stacked on a desk.

ABC News’ Rachel Scott and Katerine Faulders contributed to this report.

Copyright © 2024, ABC Audio. All rights reserved.

National

FAA temporarily bans drones in parts of New Jersey, notice threatens ‘deadly force’ for ‘imminent security threat’

Obtained by ABC News

(NEW YORK) — The Federal Aviation Administration issued a ban on drone operations in several areas of New Jersey until Jan. 17, unless operators are granted special permission from the government due to “special security reasons.”

Uncrewed aerial drones have been lighting up the sky at night in New Jersey and nearby states for weeks, since about mid-November, leading to concern from residents and speculation online. Some had demanded answers from local and state officials for answers.

The temporary flight restrictions, which are set to last until Jan. 17, have been implemented beginning Wednesday in the following locations: Hamilton, Bridgewater, Cedar Grove, North Brunswick, Metuchen, Evesham, Camden, Gloucester City, Westampton, South Brunswick, Edison, Branchburg, Sewaren, Jersey City, Harrison, Elizabeth, Bayonne, Winslow, Burlington, Clifton, Hancocks Bridge and Kearny.

The restrictions say no uncrewed aircraft systems can operate within a nautical miles of the airspace specified in each Notice to Airmen, or NOTAM, including from the ground up to 400 feet. Recreational drones are allowed to operate up to 400 feet, under FAA rules.

The previously issued temporary flight restrictions for Bedminster and Picatinny Arsenal remain in place.

The government may use “deadly force” against the drones if they pose an “imminent security threat,” the NOTAM said.

Pilots who fail to abide by those restrictions could be “intercepted, detained, and interviewed by the law enforcement/security personnel.” The FAA said it could also take administrative action, including imposing civil penalties and suspending or revoking the operators’ certificates, as well as pursuing criminal charges.

This ban comes after Sunday’s press briefing where an FAA official said there have “without a doubt” been drones flying over New Jersey, pointing to the fact that there are nearly a million drones are registered in the U.S.

The FBI has received more than 5,000 tips in the last few weeks about drone sightings in New Jersey and other states, said a multiagency statement, which was released Monday by the Department of Homeland Security, the FBI, the FAA and the Department of Defense.

“Having closely examined the technical data and tips from concerned citizens, we assess that the sightings to date include a combination of lawful commercial drones, hobbyist drones, and law enforcement drones, as well as manned fixed-wing aircraft, helicopters, and stars mistakenly reported as drones,” the joint statement said.

 

Copyright © 2024, ABC Audio. All rights reserved.

World news

Dominique Pelicot given maximum 20 year sentence in France rape trial that has shocked the world

Arnold Jerocki/Getty Images

(LONDON) — Dominique Pelicot, 72, has been given the maximum sentence of 20 years in the massive trial that has shaken France and shocked the world.

Pelicot and the 50 codefendants have all been found guilty, with all except one having been charged with rape.

The trial began on Sept. 2. Hearings took place for nearly three months and included testimony from Gisèle herself, who has become a feminist icon in France and across the world.

Prosecutors demanded the maximum sentence of 20 years for Dominique Pelicot and 10 years or more for most of the other co-defendants, if they’re found guilty. Dominique Pelicot had asked his family to “accept his apologies.”

Forty-nine of the 50 other co-defendants face aggravated rape or attempted rape charges. One co-defendant is accused of sexual assault and could face up to four years in prison.

Dominique Pelicot testified during the trial in Avignon that he mixed sedatives into Gisèle Pelicot ‘s food and drink so he could rape her, and that he recruited at least 50 other men via an online chat forum and invited them over to the family home where they are alleged to have raped and sexually abused Gisèle Pelicot. Dominique acknowledged in court that he’s guilty of the allegations and that his co-defendants understood what they were doing, The Associated Press reported.

The alleged abuse took place for almost a decade in their home in Provence, from 2011 to 2020. Gisèle has since divorced her husband.

Dominique Pélicot collected 20,000 photos and videos and stored the evidence, which later helped lead prosecutors to the 50 other defendants — “although about 20 others haven’t yet been identified,” The AP has reported.

She refused to stay anonymous, saying in court at one point during the hearings that she wants women who have been raped to know that “it’s not for us to have shame — it’s for them,” per The AP.

ABC News’ Tom Soufi Burridge and Hugo Leenhardt contributed to this report.

Copyright © 2024, ABC Audio. All rights reserved.

Entertainment

Whitney Cummings on hosting ‘Friends’ trivia show ‘Fast Friends’

Barbara Nitke/Max

So no one told you life was gonna be this way. Thirty years later, Friends is still there for you.

The NBC sitcom Friends celebrated the 30th anniversary of its premiere episode in 2024. In honor of the milestone, Max is releasing a four-part Friends fan trivia special hosted by Whitney Cummings.

The show, called Fast Friends, premieres Thursday, and Cummings told ABC Audio it’s special to be a part of something that is fun to watch.

“Everyone’s arguing about everything at this point. No one agrees on anything. I think the one thing we can all agree on as a species is that Friends is a great show,” Cummings said. “It is so cool to be a part of something that is, like, uniting people and not dividing people.”

Contestants compete for the title of Ultimate Fast Friends Champion on the show, which was filmed at The FRIENDS Experience: The One in New York City, the tourist attraction in New York that recreated all the iconic sets from the show.

“I thought I had a pretty encyclopedic knowledge of Friends until I met these contestants. These contestants are not messing around,” Cummings said. “In Friends lingo, I’ll just say they never took a break from watching Friends.”

A celebration of the beloved show would not be complete without a familiar face. Luckily Maggie Wheeler, who played Janice, appears in episode 2 of Fast Friends. She also happens to be Cummings’ favorite Friends character.

“I love Janice. She is who made me think I could be on television, because she’s loud and abrasive and, you know, kind of obnoxious,” Cummings said. “So, she’s kind of my north star … just like unapologetically loud and, you know, intense and has an annoying laugh. My brand as well.”

Copyright © 2024, ABC Audio. All rights reserved.

National

School shooting drills can do more harm than good, experts warn

ABC News

(NEW YORK) — Active shooter drills have become the norm in schools across the U.S., but experts warn they have the potential to cause more harm than good.

Though the exercises seek to prepare students to respond to gun violence in their schools, little evidence exists proving their efficacy, experts told ABC News, days after two people were killed during a shooting at a Christian school in Madison, Wisconsin.

They can, however, cause marked damage to mental health and even serve as an instruction manual for potential school shooters, according to some experts.

“There’s too little research confirming the value of [drills] involving students — but evidence is absolutely mounting on their lasting harms,” Sarah Burd-Sharps, the senior research director at the anti-gun violence advocacy group Everytown for Gun Safety, told ABC News.

Over 95% of public schools in the U.S. have trained students on lockdown procedures to be used in the event of an active shooter incident, a number that has risen significantly since the early 2000s, according to a 2017 U.S. Department of Education report. At least 40 states have laws requiring these drills, according to data collected by Everytown.

Despite their ubiquity, few standards exist regulating how these drills should be conducted, Burd-Sharps said. As a result, the practices can range widely, she said. In some schools, training may consist of basic education on lockdown procedures. Others, however, have taken it further, simulating a real life active shooting scenario with sounds of gunfire or even school staff members posing as shooters.

Trainings of this kind can be deeply traumatizing to students and have a negative impact on mental health. A 2021 study by Burd-Sharps and others, which examined 114 schools across 33 states, found an approximate 40% increase in anxiety and depression in the three months after drills.

The effects can be especially pronounced among students with preexisting mental health struggles and those who have personal experience with gun violence, such as those who regularly hear gunfire in their communities or who have survived a prior shooting, Burd-Sharps said.

Rebekah Schuler, a 19-year-old Students Demand Action leader who survived the 2021 Oxford High School shooting in Michigan, said she and her classmates hadn’t taken active shooter drills very seriously until the attack that killed four students and injured seven others.

After the shooting, many of her classmates transferred, going on to schools that held their own active shooter trainings, she said. Many found these drills retraumatizing, she said, and some would have panic attacks.

“I hadn’t known the seriousness of it, but after the shooting, they were traumatizing to a different level,” Schuler told ABC News of the drills.

Advocacy groups like Everytown, as well as Sandy Hook Promise — the nonprofit formed by the families of the 2012 Sandy Hook Elementary School shooting — are pushing for stricter guidelines for active shooter drills that serve to better prepare school communities while avoiding negative effects.

In a report, Sandy Hook Promise recommended guidelines for these trainings, including requiring that they are announced in advance, allowing students to opt out and requiring regular reviews of practices.

The organization urged strongly against simulated gunfire, which they say can traumatize participants and risk physical injuries, without improving the exercises’ effectiveness. It’s a stance Burd-Sharps and other experts said is crucial for conducting safer trainings.

“No fake bullets, fake blood, janitors dressed as gunmen. That is deeply traumatizing,” she said. “And it’s not just traumatizing for the kids, it’s traumatizing for the teachers as well.”

Though few laws govern how these trainings are run, some states have begun taking steps to limit the most hyperrealistic practices. In July, New York banned drills that seek to realistically simulate shootings, and guidelines released by the Kentucky Department of Education recommend avoiding “dramatic crisis simulations.”

Active shooter drills also can come with another grim risk: serving as a blueprint for would-be school shooters on how to circumvent safety measures in planning their own attack. For instance, Natalie Rupnow, the alleged shooter at Abundant Life Christian School in Madison, was a student at the school.

“Because 3 in 4 school shooters are a current or former student, by drilling multiple times a year, you are giving the roadmap of what’s going to happen during an active shooter incident to a potential shooter,” Burd-Sharps said, citing a 2016 New York Police Department report.

Experts recommend focusing training efforts more on teachers than on students, and concentrating more efforts around prevention strategies — particularly convincing parents to lock up their guns and teaching students who they can safely go to if they observe concerning behavior among their peers.

“When you compound actual shootings that kids see on TV all the time with these drills, and with lockdowns in response to new incidents, it’s actually not surprising that many American school kids are in crisis. The last thing they need is additional trauma from drills multiple times a year,” Burd-Sharps said.

Copyright © 2024, ABC Audio. All rights reserved.

Entertainment

Rachel Brosnahan, Neil deGrasse Tyson and more to compete on ‘Celebrity Jeopardy!’

Disney/Eric McCandless

We now know the famous contestants who will go head-to-head on the upcoming season 3 of Celebrity Jeopardy!

The star-studded group of contestants includes big names like Rachel Brosnahan, Seth Green, Max Greenfield, Sean Gunn and Neil deGrasse Tyson.

Also competing on this season are Brian Jordan Alvarez, Blake Anderson, W. Kamau Bell, Corbin Bleu, Yvette Nicole Brown, D’Arcy Carden, Margaret Cho, Sherry Cola, Chris Distefano, Omar J. Dorsey, Susie Essman, Fortune Feimster, David Friedberg, Mina Kimes, Camilla Luddington, Natalie Morales, Ana Navarro, Melissa Peterman, Phoebe Robinson, Robin Thede, Jackie Tohn and Roy Wood Jr.

The celebrities are competing for a chance to win $1 million for the charity of their choice.

Hosted again by Ken Jennings, the spinoff of the beloved game show Jeopardy! will premiere its third season on Jan. 8 on ABC. Episodes of Celebrity Jeopardy! will be available to stream on Hulu the day after they air.
 

Copyright © 2024, ABC Audio. All rights reserved.

Politics

Paris Hilton-backed child abuse bill headed to Biden’s desk for signature

Chip Somodevilla/Getty Images

(WASHINGTON) — The House passed the Paris Hilton-championed Stop Institutionalized Child Abuse bill on Wednesday, a sweet victory for the celebrity hotel heiress after the nearly three years she’s spent lobbying politicians in Washington on the issue of reform in the “troubled teen” industry.

The measure that would require more federal oversight into these facilities for troubled minors passed by a vote of 373-33.

All those who voted against the legislation were Republican, most from the far-right faction of the party, including Reps. Marjorie Taylor Greene of Georgia, Lauren Boebert of Colorado, Andy Biggs and Paul Gosar of Arizona, Byron Donalds of Florida, and Thomas Massie of Kentucky, among others.

The Senate passed the bill a week ago with unanimous support. It now heads to President Joe Biden’s desk for his signature.

“I am so emotional right now. I have never felt prouder in my life,” Hilton told reporters after the vote. “Just to be here today and see our bill pass in Congress has been one of the most incredible moments of my life and I just know that the teenage me would be so proud of the woman that I am today — turning my pain into purpose and being a voice for so many people who don’t have a voice.”

Hilton said she traveled to Washington every six to 10 months starting in October 2021 to push for a child abuse bill. She traveled back to the Hill on Monday and has spent the past two days meeting with representatives in order to get the measure across the finish line. She held a press conference outside the Capitol on Monday evening, urging the House’s passage of the bill.

Hilton was personally in contact with House Majority Leader Steve Scalise regarding movement on the bill this week.

Hilton for years has been an advocate for reform in congregate care facilities and residential treatment programs for “troubled” minors. She’s brazenly described her own traumatizing experience at Provo Canyon School in Utah when she was a teenager.

The legislation — which would ordinarily pass through the House Energy and Commerce committee before it could get called by leaders to the floor — was fast-tracked by bypassing that step, according to a source familiar with committee business.

“When the U.S. Senate came together in a rare show of unity to pass the Stop Institutional Child Abuse Act unanimously on Wednesday December 11th, it was one of the best moments of my life. It was proof that when we listen to survivors and put politics aside, we can create real, meaningful change. But this journey isn’t over. I can’t celebrate until this bill becomes law, and now it’s up to the U.S House of Representatives to finish what the Senate started,” Hilton wrote in an open letter shared to her Instagram page on Monday.

“To Leader Scalise, Speaker Johnson, and every member of the House: I urge you to think about the children who can’t speak for themselves. They’re relying on us—on you—to stand up for their safety and dignity. Passing this bill would be a testament to what we can achieve when we lead with empathy and courage.”

Hilton has traveled to Washington every six to 10 months starting in October 2021, according to her spokesperson, each time asking Congress to reform youth residential treatment facilities.

She’s met individually with members like Senate Majority Leader Chuck Schumer, who thanked Hilton after the bill’s passage last week for her work on the issue, and Republicans like Sens. Chuck Grassley of Iowa and Tim Scott of South Carolina.

Some of her biggest advocates have been the cosponsors of the bill: Sen. Jeff Merkley, D-Ore., and Sen. John Cornyn, R-Texas, along with Rep. Ro Khanna, D-Calif., Hilton said.

“A lack of oversight and transparency in residential youth programs has allowed for the abuse of children in facilities across the country for far too long,” Cornyn said in a statement after the bill passed.

“I’m proud that the Senate unanimously passed this legislation to ensure the vulnerable children in these facilities are protected, and I want to thank the countless advocates who have bravely shared their stories to help end institutional child abuse.”

Hilton also testified before the House Ways and Means Committee in June, emotionally recounting her experience being at Provo Canyon School as a teen.

“These programs promised healing, growth, and support, but instead did not allow me to speak, move freely, or even look out a window for two years,” she testified in 2023. “I was force-fed medications and sexually abused by the staff. I was violently restrained and dragged down hallways, stripped naked, and thrown into solitary confinement.”

The Provo school in Utah, which is still operating today, released an updated statement in June 2024 saying they couldn’t comment on the operations or student experiences at the school prior to August 2000, when it had changed ownership shortly after Hilton’s stint there. Provo said it did not “condone or promote any form of abuse,” in their statement.

Hilton has gone to the White House to advocate for child welfare, meeting with policy staff in May 2022.

“We have had some prior conversations with the White House about the bill, and we don’t have a reason to believe that they wouldn’t sign it into law,” Hilton’s spokesperson said.

The socialite’s push for congregate-care reform started in 2021, when she came to Washington in support of a similar measure, the Federal Accountability for Congregate Care Act, which was a different bill that was introduced in October 2021 and led by Khanna, Merkley, Rep. Rosa DeLauro, D-Conn., and then-Rep. Adam Schiff, D-Calif.

Before her visit in 2021, Hilton had opened up about her 11-month experience at Provo Canyon school in her 2020 documentary “This is Paris,” and in a Washington Post op-ed.

Copyright © 2024, ABC Audio. All rights reserved.

National

UnitedHealthcare CEO killing latest: Luigi Mangione to waive extradition

Jeff Swensen/Getty Images

(PENNSYLVANIA) — Luigi Mangione, the man accused of gunning down UnitedHealthcare CEO Brian Thompson, will waive extradition to New York when he appears in court in Pennsylvania on Thursday, his attorney said Wednesday.

The  Pennsylvania judge must accept the waiver or go forward with a scheduled hearing Thursday morning immediately following a separate hearing on the local charges Mangione faces.

Assuming the extradition paperwork is in order, the NYPD would transport Mangione from Pennsylvania to New York. Mangione could be arraigned in New York as soon as Thursday.

“I’m ready to bring him back here and make sure justice is served,” New York Gov. Kathy Hochul said Wednesday.

A special edition of “20/20” airing Dec. 19 at 10 p.m. ET on ABC looks at the murder of UnitedHealthcare CEO Brian Thompson and the manhunt that led to the arrest of Luigi Mangione, who went from the Ivy League to alleged killer.

Mangione, 26, is accused of gunning down Thompson outside a Hilton hotel on Dec. 4 as the CEO headed to an investors conference. Prosecutors alleged Mangione waited nearly an hour for Thompson to arrive.

A Manhattan grand jury has upgraded charges against Mangione to include first-degree murder in furtherance of terrorism, prosecutors announced Tuesday.

The slaying in the heart of Midtown Manhattan unfolded as tourists, commuters and residents were on the streets and was “intended to evoke terror,” Manhattan District Attorney Alvin Bragg said.

In Pennsylvania, where Mangione was arrested on Dec. 9 after nearly one week on the run, he faces charges including allegedly possessing an untraceable ghost gun.

When Mangione was apprehended, he had a 9 mm handgun with a 3D-printed receiver, a homemade silencer, two ammunition magazines and live cartridges, prosecutors said.

Mangione is also charged in New York with: two counts of second-degree murder, one of which is charged as killing as an act of terrorism; two counts of criminal possession of a weapon in the second degree; four counts of criminal possession of a weapon in the third degree; one count of criminal possession of a weapon in the fourth degree; and one count of criminal possession of a forged instrument in the second degree.

Editor’s Note: This story has been updated to reflect that Mangione will waive extradition at Thursday’s hearing, according to his lawyer, but he has not yet waived extradition.

Copyright © 2024, ABC Audio. All rights reserved.

Business

Fed cuts interest rates, delivering relief for borrowers at last meeting before Trump takes office

Chris Unger/Zuffa LLC via Getty Images

(WASHINGTON) — The Federal Reserve cut interest rates by a quarter of a percentage point on Wednesday, delivering relief for borrowers at the central bank’s last meeting before President-elect Donald Trump takes office next month.

The central bank predicted fewer rate cuts next year than it had previously indicated, however, suggesting concern that inflation may prove more difficult to bring under control than policymakers thought just a few months ago.

The major stock indexes inched downward in trading after the announcement in response to the forecast of fewer rate cuts.

Speaking at a press conference in Washington D.C. on Wednesday, Fed Chair Jerome Powell said the central bank may proceed at a slower pace with future rate cuts, in part because it has now lowered interest rates a substantial amount.

Powell also said a recent resurgence of inflation influenced the Fed’s expectations, noting that some policymakers considered uncertainty tied to potential policy changes under Trump.

“It’s common-sense thinking that when the path is uncertain, you get a little slower,” Powell said. “It’s not unlike driving on a foggy night or walking around in a dark room full of furniture.”

The move marked the third consecutive interest rate cut since the Fed opted to start dialing back its fight against inflation in the fall. The Fed has lowered interest rates by a percentage point in recent months.

However, the Fed’s forecast on Wednesday said it anticipates only a half a percentage point of rate cuts next year and another half-percent cut in 2026.

The benchmark interest rate helps determine loan payments for everything from credit cards to mortgages. Even after recent cuts, the Fed’s interest rate remains at a historically high level of between 4.25% and 4.5%.

The size of the interest rate cut on Wednesday matched investors’ expectations.

The latest rate cut may prove the Fed’s last for many months, experts previously told ABC News.

A recent bout of stubborn inflation could prompt central bankers to freeze interest rates in place as they bring price increases under control. A humming economy, meanwhile, shows little need for the jolt of activity that lower borrowing costs may provide, the experts said.

Consumer prices climbed 2.7% in November compared to a year ago, marking two consecutive months of accelerating inflation, government data last week showed.

Inflation has slowed dramatically from a peak of more than 9% in June 2022. But the recent uptick has reversed some progress made at the start of this year that had landed price increases right near the Fed’s target of 2%.

In August, Trump said the president should have a role in setting interest rates. The proposal would mark a major shift from the longstanding norm of political independence at the Fed.

Powell struck a defiant tone last month when posed with the question of whether he would resign from his position if asked by Trump.

“No,” Powell told reporters assembled at a press conference in Washington, D.C., blocks away from the White House.

When asked whether Trump could fire or demote him, Powell retorted: “Not permitted under the law.”

Copyright © 2024, ABC Audio. All rights reserved.