(NEW YORK) — Facebook plans to replace its fact checkers with “Community Notes,” a move that Meta CEO Mark Zuckerberg said would allow the social network to return “to our roots around free expression.”
“We’re replacing fact checkers with Community Notes, simplifying our policies and focusing on reducing mistakes,” Zuckerberg said on Tuesday. “Looking forward to this next chapter.”
The changes, which will also be in place for Instagram and Threads, will lift restrictions “on some topics that are part of mainstream discourse” and will focus the company’s “enforcement on illegal and high-severity violations,” Joel Kaplan, chief global affairs officer, said in a blog post.
As the company’s fact-checking capabilities have grown, they have expanded “to the point where we are making too many mistakes,” which in turn has frustrated many of the social networks’ users, Kaplan said.
“Too much harmless content gets censored, too many people find themselves wrongly locked up in ‘Facebook jail,’ and we are often too slow to respond when they do,” he said.
This is a developing story. Please check back for updates.
ABC News’ Michael Kreisel and Zunaira Zaki contributed to this report.
(WASHINGTON) — In a major change that could affect millions of Americans’ credit scores, the Consumer Financial Protection Bureau on Tuesday finalized a rule to remove medical debt from consumer credit reports.
The rule would erase an estimated $49 billion in unpaid medical bills from the credit reports of roughly 15 million Americans, the CFPB said.
That could help boost those borrowers’ credit scores by an average of 20 points, helping them qualify for mortgages and other loans.
“No one should be denied economic opportunity because they got sick or experienced a medical emergency,” Vice President Kamala Harris said in a statement touting the new rule.
She announced the proposal for the rule last June alongside CFPB Director Rohit Chopra.
“This will be life-changing for millions of families, making it easier for them to be approved for a car loan, a home loan or a small-business loan,” Harris added.
Major credit reporting agencies have already announced voluntary steps to remove medical debt from their reports.
The final rule is set to take effect in March – but that timeline could be delayed by legal challenges.
Debt collection industry groups like the Association of Credit and Collection Professionals have opposed the change, saying it would result in “reduced consequences for not paying your bills, which in turn will reduce access to credit and health care for those that need it most.”
(WASHINGTON) — President Joe Biden on Friday announced a decision to block the $14 billion acquisition of U.S. Steel by Japan-based Nippon Steel, saying domestically produced steel is essential to U.S. national security.
“Without domestic steel production and domestic steel workers, our nation is less strong and less secure,” Biden said in a statement.
The move marks the latest effort on the part of the Biden administration to protect U.S. markets from foreign-owned firms.
Biden has preserved many of the tariffs imposed by former President Donald Trump, and he enacted a law that would ban China-based social media platform TikTok later this month if the company doesn’t find a new parent company. The Supreme Court is set to hear arguments this month in a legal challenge brought by TikTok.
The decision comes weeks after a federal committee declined to issue a recommendation on the merger, leaving Biden an opportunity to block the deal.
The Committee on Foreign Investment in the United States, tasked with the potential acquisition, shared concerns about the national security risks posed by the loss of the country’s second-largest steel producer.
In response to the committee’s decision, Nippon Steel alleged the White House had “impermissible undue influence” on the review. Nippon Steel has previously threatened to challenge the White House decision in court.
The fate of U.S. Steel – a storied 120-year-old firm based in Pittsburgh, Pennsylvania – became a lightning rod during the 2024 election season.
This is a developing story. Please check back for updates.
(NEW YORK) — Homebuyers eager to forget this year’s housing market may ring in 2025 with an extra dash of zeal.
A rapid rise in home prices has coincided with stubbornly high mortgage rates, shutting out potential buyers with daunting costs.
A burst of supply could have eased prices, but no such relief was forthcoming. Instead, homeowners have balked at swapping out their current mortgage rates for higher ones, and construction has failed to make up for a long-standing shortage in new homes.
Unfortunately, next year’s housing market will likely bring more of the same, experts told ABC News.
Home prices may rise at a slower pace, offering a glimmer of hope as high mortgage rates fall slightly but continue to weigh on consumer activity, they said.
Still, the market appears locked into a fundamental mismatch of supply and demand set to frustrate buyers, the experts added.
“I don’t see much sunshine in the forecast,” Ken Johnson, chief of real estate at the University of Mississippi, told ABC News. “It’s going to be gloomy and overcast, but it’s not going to be stormy.”
An unusual trend has beguiled buyers: Home prices are soaring, despite a prolonged stretch of high mortgage rates that, in theory, should crimp demand and push down prices.
Market observers who spoke to ABC News said they expect both price increases and mortgage rates to ease in 2025 — but only a smidge.
The average rate for a 30-year fixed mortgage stands at 6.85%, FreddieMac data last week showed. That figure has ticked up slightly since the start of the year, despite a series of interest rate cuts at the Federal Reserve in recent months.
Earlier this month, Fed Chair Jerome Powell said rate cuts may slow over the course of 2025. Such a policy would leave mortgage rates higher for longer, experts said.
Redfin, a Seattle, Washington-based real estate giant, forecasts average 30-year fixed mortgage rates will remain in the high 6% range over the duration of 2025. Online real estate marketplace Zillow says mortgage rates will fall, but only moderately.
Alongside persistently high mortgage rates, experts predicted a continued, albeit slower, rise in home prices.
In September, Goldman Sachs predicted a 4.4% rise in home prices in 2025, which would mark a slight decline from the 4.5% rise in 2024.
The persistence of high mortgage rates will put some downward pressure on prices, since demand will soften as many consumers forego expensive loans, experts said, but the high rates will also exacerbate a lack of supply that has kept prices soaring.
Current homeowners will want to remain locked into relatively low mortgage rates. Homebuilding will deliver much-needed supply of new homes, but it will fall well short of the amount required to meet demand, experts said.
“I don’t want to be the bearer of bad news, but it doesn’t feel like prices are going to moderate that much,” Marc Norman, associate dean at the New York University School of Professional Studies and Schack Institute of Real Estate, told ABC News. “If you don’t have a lot on the market, that’s going to put pressure on prices.”
Experts who spoke to ABC News acknowledged that economic forces could defy expectations, leaving the housing market in better or worse shape than anticipated.
Faster-than-expected progress in bringing inflation down to the Fed’s target level could free up the central bank to slash interest rates, which in turn would lower mortgage rates, some experts said. An economic downturn would damage household finances and ease demand, likely leading to a drop in home prices, they added.
If inflation proves more stubborn than expected, however, interest rates may stay high for even longer, experts said, which could put the housing market into an even deeper freeze.
For now, the outlook for 2025 appears clear, Christopher Mayer, a real estate professor at the Columbia University Business School, told ABC News.
“My best guess is that next year is a lot like this year,” Mayer said.
(NEW YORK) — Nearly half of U.S. states are set to raise their minimum wage at the outset of 2025, boosting pay for millions of workers stretching from California to Maine.
In all, 21 states will raise their wage floors on Jan. 1 in keeping with inflation-adjusted increases or as part of scheduled hikes that take effect at the beginning of each calendar year.
The pay increases will affect about 9.2 million workers, who will gain a combined $5.7 billion over the course of 2025, according to the left-leaning Economic Policy Institute, or EPI.
After the wave of wage hikes, Washington will become the state with the highest minimum wage, offering workers $16.66 per hour. Workers in California and New York will enjoy the second-highest wage floor, as both states implement a minimum hourly wage of $16.50.
Pay increases set to take hold in the new year will bring the wage floor to $15 an hour or higher in Washington, D.C., as well as 10 states, among them Delaware, Illinois and Rhode Island. Those areas play host to one of every three U.S. workers, EPI found.
Overall, the states set to raise their minimum wage on Wednesday include: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia and Washington.
The nation’s highest wage floors will take effect in some of the nearly 50 cities and other localities that will impose minimum pay hikes.
Twenty-nine cities in California will see pay hikes, including a $17-an-hour wage floor that will take effect in Oakland. Seven localities in Washington will increase their minimum wage, among them the country’s highest wage floor: $21.10 an hour in Tukwila.
The latest round of pay increases, however, will not affect more than a dozen states concentrated in the South that lack a minimum wage or offer a minimum wage that does not exceed the federal minimum of $7.25 per hour.
The last federal minimum wage hike took place in 2009, when Congress raised the pay floor to its current level. When adjusted for inflation, the federal minimum wage stands at its lowest level since February 1956, nearly 70 years ago, EPI found.
(NEW YORK) — The fund disbursing money to the victims of Bernie Madoff’s legendary Ponzi scheme began its 10th and final distribution on Monday, putting another $131 million in the pockets of swindled investors.
Twenty-three thousand victims worldwide are receiving payments, bringing their total recoveries to 94% of their losses. Most of these victims were small investors who lost less than $500,000 in the fraud, according to federal prosecutors.
Since the collapse of Madoff’s investment house and his 2009 guilty plea, the Madoff Victim Fund has paid more than $4 billion to nearly 41,000 victims in 127 countries.
“This office has never stopped pursuing justice for victims of history’s largest Ponzi scheme,” acting U.S. Attorney Edward Y. Kim said.
For decades, Madoff used the investment advisory business he founded in 1960 to steal billions from his clients, turning his wealth management firm into the world’s largest Ponzi scheme to benefit himself, his family and select members of his inner circle.
He was sentenced to 150 years in prison, where he died in 2021.
“The unprecedented scope and complexity of the Madoff remission process shows the power of forfeiture to recover assets and to compensate victims,” Principal Deputy Assistant Attorney General Brent Wible said in a statement on Monday.
(NEW YORK) — Shares of Boeing fell in early trading on Monday, one day after a Boeing model 737-800 was involved in the Jeju Air plane crash in South Korea that killed scores of passengers.
The stock price dropped more than 4% at the open of trading on Monday morning. The slide came hours after South Korea’s transportation ministry announced it would investigate the crash and conduct a full inspection of all Boeing 737-800 aircraft in use in South Korea.
All but two of the 181 people on board died Sunday in what authorities said was the deadliest plane crash in South Korea in decades.
The only survivors, a man and a woman, were among the six crew members onboard the Jeju Air Boeing 737-800 when it skidded along a runway, crashed into a wall and burst into flames on Sunday morning, officials said.
In a statement posted on X on Sunday, Boeing said the company had established communication with Jeju Air about the incident.
“We are in contact with Jeju Air regarding flight 2216 and stand ready to support them,” Boeing said. “We extend our deepest condolences to the families who lost loved ones, and our thoughts remain with the passengers and crew.”
Boeing did not immediately respond to ABC News’ request for comment.
Jeju Air said it would not suspend operations of its 737-800 aircraft.
“There are no plans to suspend operations, but they will examine those parts once more and check them thoroughly during the inspection process,” said Song Kyung-hoon, head of Jeju Air’s Management Support Division.
As the aircraft approached South Korea’s Muan International Airport at 8:54 a.m. local time, the control tower gave it permission to land on a south-to-north runway, according to an official timeline by the Korean Ministry of Land Infrastructure and Transport.
Three minutes later, the flight control tower issued a warning of a possible bird strike, the transport ministry said. About two minutes after that warning, a pilot sent a distress signal, saying, “Mayday, mayday, mayday, bird strike, bird strike, going around,” the ministry said.
An official cause of the crash is under investigation by South Korea’s Aviation and Railway Accident Investigation Board.
The fatal crash and ensuing stock slide mark the latest setback for Boeing, which sought to put a series of scandals behind it last month when it struck a deal with a union representing thousands of West Coast factory workers, who had undertaken a seven-week strike.
The labor action began days after Boeing’s troubled Starliner spacecraft returned to Earth without its crew due to mechanical issues, and months after a door plug blew out of the company’s 737 Max 9 aircraft mid-flight, which itself happened five years after Boeing’s 737 Max aircraft were first grounded worldwide following a pair of tragic crashes.
The losses for Boeing on Monday coincided with a broader decline in the stock market.
The Dow Jones Industrial Average fell nearly 700 points in early trading, dropping the index about 1.5%.
The S&P 500 slid 1.5% in early trading on Monday, while the tech-heavy Nasdaq also declined 1.5%.
ABC News’ Joohee Cho and Kevin Shalvey contributed to this report.
(NEW YORK) — Two weeks before the Supreme Court is set to hear oral arguments over TikTok’s future, President-elect Donald Trump has asked the justices to delay a Jan. 19 deadline for the app to be sold to a new owner or face a ban in the U.S.
An amicus brief filed by Trump’s nominee to be solicitor general, John Sauer, is asking the court to grant a stay delaying the deadline so that the incoming president can work out a “negotiated resolution” that would save the app.
The filing casts Trump as someone who “alone possesses the consummate dealmaking expertise, the electoral mandate, and the political will to negotiate a resolution to save the platform while addressing the national security concerns expressed by the Government.”
Trump’s brief says he “opposes banning TikTok in the United States at this juncture,” but does not express the view that the law requiring the sale violates the First Amendment, saying he takes no position on the merits of the case.
Instead, the filing from Sauer asks the court to put the deadline on pause to allow Trump’s incoming administration “to pursue a negotiated resolution that could prevent a nationwide shutdown of TikTok, thus preserving the First Amendment rights of tens of millions of Americans, while also addressing the government’s national security concerns.”
TikTok, which has over 170 million U.S. users, has sued over the law requiring it to be sold by its current Chinese-based owner ByteDance by Jan. 19 or be banned in the U.S.
A federal appeals court earlier this month rejected the company’s request for an emergency pause in the deadline.
The Supreme Court is set to hear arguments in the case on Jan. 10.
President Joe Biden signed the Protecting Americans from Foreign Adversary Controlled Applications Act, which was part of a massive, $95 billion foreign aid package passed by Congress, on April 24.
Biden and some congressional leaders argued that the ultimatum against TikTok was necessary because of security concerns about ByteDance and its connections to the Chinese government.
Trump originally tried to ban TikTok in his first term, but has since reversed course, vowing during the 2024 presidential campaign to “save” the app.
In Trump’s amicus brief, Sauer raised the idea of social media censorship, invoking Brazil’s recent month-long ban of social media platform X, the treatment of the Hunter Biden laptop story and government efforts to stamp out COVID-19 misinformation as incidents that should give the justices pause.
“This Court should be deeply concerned about setting a precedent that could create a slippery slope toward global government censorship of social media speech,” Sauer wrote in the filing. “The power of a Western government to ban an entire social-media platform with more than 100 million users, at the very least, should be considered and exercised with the most extreme care—not reviewed on a ‘highly expedited basis.’”
While Sauer acknowledged that TikTok may pose national security risks while it remains under ByteDance’s control, he also urges the justices to be skeptical of national security officials, whom, he said, “have repeatedly procured social-media censorship of disfavored content and viewpoints through a combination of pressure, coercion, and deception.”
“There is a jarring parallel between the D.C. Circuit’s near-plenary deference to national security officials calling for social-media censorship, and the recent, well-documented history of federal officials’ extensive involvement in social-media censorship efforts directed at the speech of tens of millions Americans,” Sauer wrote.
(NEW YORK) — The stock market climbed to record highs in 2024, extending banner gains achieved the previous year.
The S&P 500 — the index that most people’s 401(k)’s track — climbed nearly 28% this year, as of Monday.
The tech-heavy Nasdaq leapt a staggering 34% over that period; while the Dow Jones Industrial Average climbed 16%.
Consecutive years of strong stock market performance have posed a quandary for forecasters: Will high stock prices scare off would-be investors in 2025, or will momentum push shares even higher?
Experts have attributed the rise of share prices this year to a set of favorable trends: Solid economic growth, enthusiasm about artificial intelligence and the long-awaited start of interest rate cuts at the Federal Reserve.
Those tail winds are expected to keep pushing stocks skyward in 2025, experts said, but they cautioned about more-than-usual uncertainty that could prevent further gains or even amplify them. The biggest unknown for stocks in 2025, they said: President-elect Donald Trump.
“As we close the books on 2024 and peer into 2025, perhaps the uncertainties this time are of a magnitude beyond the norm,” Kevin Gordon and Liz Ann Sonders, a pair of investment strategists at Charles Schwab, said last week. “Good luck figuring this one out.”
Good news abounded for the stock market this year, in part because the economy defied doomsayers.
The economy continued to grow at a solid clip in 2024, while inflation fell. That performance kept the U.S. on track for a “soft landing,” in which the economy averts a recession while inflation returns to normal.
Gross domestic product grew at a robust 2.8% annualized rate over three months ending in September, the most recent period for which data is available.
“U.S. strength remains undiminished,” Seema Shah, chief global strategist at Principal Asset Management, told ABC News in a statement.
Inflation has slowed dramatically from a peak of more than 9% in June 2022. A months-long stretch of progress earlier this year helped nudge the Federal Reserve toward its first interest rate cuts in four years.
In recent months, the Fed has cut its benchmark rate three-quarters of a percentage point, dialing back its fight against inflation and delivering some relief for borrowers saddled with high costs.
Over time, rate cuts ease the burden on borrowers for everything from home mortgages to credit cards to cars, making it cheaper to get a loan or refinance one. The cuts also boost company valuations, potentially helping fuel returns for stockholders.
The Fed is expected to continue cutting interest rates next year, though a recent bout of stubborn inflation could slow, or even pause, the lowering of rates, experts previously told ABC News.
“Markets expect gradual rate cuts next year, which would imply inflation stays under control, the job market hums along at an acceptable pace, stocks rise, and everybody is happy,” Callie Cox, chief market strategist at Ritholtz Wealth Management, said in a statement to ABC News.
“Reality isn’t that cut and dry, though,” Cox added.
Some analysts pointed to Trump’s policies as a major source of uncertainty for the nation’s economic performance and, in turn, the stock market.
Trump has vowed to cut taxes for individuals and corporations, which could spur economic growth and raise stock prices, some experts said. However, they added, Trump’s proposed tariffs could hurt some U.S. producers and retailers that depend on imported raw materials, and may cause a resurgence of inflation. As a result, some stocks could suffer.
“The most significant wild card on the table for 2025 will be the potential implementation of tariffs,” David Sekera, chief U.S. market strategist for Morningstar, said earlier this month.
Since 1990, there have been 12 years in which the S&P 500 has gained 20% or more, Cox said. The stock market crossed that threshold last year, and is almost certain to do so when 2024 comes to an end. It will be difficult for the stock market to achieve that feat for a third consecutive year, Cox added.
“If you’re expecting a repeat of 2024, you’re asking a lot of the market gods,” Cox said.
Still, the enticing possibility of another rally will draw investor interest as observers watch for any early signs of sputtering.
“The opportunities for investors are plenty, but so are the obstacles,” Shah said.
(NEW YORK) — Holiday spending surged in 2024, blowing past expectations and outpacing customer purchases over the gift-buying season last year, according to data released on Thursday by Mastercard SpendingPulse, which gauges in-store and online retail sales.
The end-of-year flex of consumer strength marks the latest indication of resilient U.S. buying power, which has kept the economy humming despite a prolonged stretch of high interest rates.
Retail sales climbed 3.8% from Nov. 1 to Dec. 24 compared with the same period last year, Mastercard SpendingPulse data showed. The boost in spending exceeded a Mastercard SpendingPulse estimate of 3.2%, while outperforming last year’s growth of 3.1%. The retail sales data excludes automotive purchases.
“Solid spending during this holiday season underscores the strength we observed from the consumer all year,” Michelle Meyer, chief economist at the Mastercard Economics Institute, told ABC News in a statement.
Jewelry sales grew more than any other product category, climbing 4% compared to last year, the data showed. Spending on apparel and electronics also climbed at a solid pace.
The shopping surge was most pronounced online, where spending grew 6.7% compared to the same period last year, the data showed.
While the overall spending reflects the health of U.S. consumers, the pattern of purchases indicates a search for discounts, Meyer said.
“The holiday shopping season revealed a consumer who is willing and able to spend but driven by a search for value as can be seen by concentrated e-commerce spending during the biggest promotional periods,” Meyer added.
The holiday sales growth suggests the U.S. economy has remained robust, even amid high borrowing costs.
Gross domestic product grew at a solid 2.8% annualized rate over three months ending in September, the most recent quarter for which data is available.
The labor market has slowed but proven sturdy. The unemployment rate stands at 4.2%, a historically low figure.
Consumer spending accounts for nearly three-quarters of U.S. economic activity.
The increase in holiday spending coincided with an initial bout of relief for borrowers, as the Federal Reserve cut interest rates by a total of one percentage point over the final few months of the year. However, interest rates still stand at a historically high level of between 4.25% and 4.5%.
Lower interest rates typically stimulate economic activity by making it easier for consumers and businesses to borrow, which in turn fuels investment and spending. However, interest rate cuts usually influence the economy after a lag of several months, meaning the recent lowering of rates likely had little impact on holiday spending.
Earlier this month, the central bank predicted fewer rate cuts next year than it had previously indicated, suggesting concern that inflation may prove more difficult to bring under control than policymakers thought just a few months ago.
Speaking at a press conference in Washington, D.C., earlier this month, Federal Chair Jerome Powell indicated that the willingness to keep interest rates high stemmed in part from the health of the U.S. economy and the shoppers propelling it.
“We think the economy is in a really good place,” Powell said, later adding: “Growth of consumer spending has remained resilient.”
