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Isa Soares Tonight
U.S. Fed Cuts Interest Rates By Quarter Percentage Point; Zelenskyy In Brussels To Meet With European Leaders; Russia Detains Uzbek Suspect Over General's Assassination; Fed Cuts Interest Rates By Quarter Percentage Point; Supreme Court To Hear Case Over TikTok Ban; House Ethics Committee To Release Gaetz Report; Ghana's Supreme Court Rejects Challenges To Anti- LGBT Bill; NASA Astronauts' Homecoming Delayed Again. Aired 2-3p ET
Aired December 18, 2024 - 14:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[14:00:00]
ISA SOARES, HOST, ISA SOARES TONIGHT: Hello and a very warm welcome, everyone, I'm Isa Soares. Tonight, we can start with breaking news because
for the last time this year, 2024, the Federal Reserve is expected to announce a decision on interest rates -- should be happening right now.
Richard Quest is here with me keeping an eye on the numbers and that decision.
Richard, we were expecting a rate cut. Is that coming through? What are you seeing? I'm keeping --
RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: Yes --
SOARES: An eye on their website too.
QUEST: Yes, we're just waiting for the actual confirmation. But the general gist and thought is that the Fed is going to cut rates by a quarter
percentage point. And indeed, that's exactly what they've done. The Fed funds rate has now cut to 4 and a quarter, to 4.5, that is the rate cut
that is now in place.
SOARES: Yes --
QUEST: It's a target range that we always talk about, Isa. So, it goes from one to the other to a widest range of half a percentage point. And the Fed
for the third time this year has now cut interest rates.
SOARES: And this was priced in, right. If we can have a look at some at the Dow, we can bring that up, just get my producer. But that -- I mean --
QUEST: Yes, it was priced in --
SOARES: That was kind of priced in --
QUEST: Yes, and this is an interesting cut because the Fed had made it clear that they were prepared to do it. Let me tell you what they're
saying.
SOARES: Yes --
QUEST: They're projecting two cuts next year, right? There had been the project of 3 or 4 --
SOARES: Of three, that's right.
QUEST: Three or four, and they see higher inflation next year, so, they don't believe that 2 percent inflation will be reached until 2027. Now --
SOARES: OK --
QUEST: Two percent inflation is their target range --
SOARES: Yes --
QUEST: We're at 2.6 percent to 2.7 percent now. And why I say this was a more interesting cut because they priced it in. They'd let the market to
assume it. But now, the Fed has to bank on two things. First of all, inflation is higher than they'd --
SOARES: Yes --
QUEST: Like, B, the market is moving further and faster than --
SOARES: Yes --
QUEST: They'd like, and C --
SOARES: Trump --
QUEST: Donald Trump. Donald Trump, his policies both on tariffs, on spending cuts are inherently inflationary.
SOARES: And I remember a conversation you and I had about this, and what we can expect in terms of -- in terms of his agenda and his policies --
QUEST: Yes --
SOARES: I'm talking about Trump here, then what are we expected to hear from Jerome Powell? What should we be listening to when he speaks in what?
Twenty seven minutes, 28 minutes or so --
QUEST: He is going to say -- no, he's going to say that the Fed is comfortable with where they are, that it is time to take a pause to see how
things play out, that there are -- that the trajectory is going in the right direction, but that there are, it's time to take stock literally, of
what's going to happen.
The sub-text of this is, we're not taking risks. We are not as the Fed going to put fuel on the fire -- I mean, rates are still slightly
contradictory --
SOARES: Yes --
QUEST: At the moment because of the difference between real inflation and nominal inflation and real interest rates.
SOARES: Yes --
QUEST: I believe that they're going to wait, and they're going to wait because you've got higher inflation by accident with the tariffs.
SOARES: Yes --
QUEST: You've got higher inflation by design because he's going to have spending cuts.
SOARES: Give us some context here because on your show, I know you've been speaking to economists about what we're likely to see from this new Trump
presidency --
QUEST: Yes --
SOARES: When it comes to the economy. The economy right now is pretty sound. I know inflation is slightly, you say --
(CROSSTALK)
SOARES: Higher, about unemployment, very -- you know, pretty good, right, on the whole?
QUEST: Rock solid.
SOARES: So, what are their concerns with Donald Trump and what he may bring? Is it purely inflation here?
QUEST: They are concerned first of all with deregulation of the financial industry, and whether or not that's going to create imbalances, could that
create bubbles? Is he going to juice the stock market? Which of course is the thing that Donald Trump loves --
SOARES: Oh --
QUEST: Is a rising stock market. Is he going to juice it to such an extent that, that will create imbalances? The next thing they're worried about is
tariffs. How is that going to affect global trade, U.S. inflation? How disruptive -- you've been talking on this program about Canada.
SOARES: Yes.
QUEST: Look, I mean --
SOARES: Exactly --
QUEST: It's just sort of blown up Canadian politics. It has the potential to do it with European politics, with everywhere. They're going to be
worried about that in this scenario.
[14:05:00]
You're going to sit on your hands and do nothing until you're bloody sure that -- where you know this is going. The last thing they want is to
rekindle inflation.
SOARES: And we shall see. I know the Fed very much stays away from the politics, but we'll have a look at the language and the questions I think
sometimes, often, Richard, it's at these press conferences when we hear from Jerome Powell, the questions and the answers that are more
enlightening. Tell me what are you picking up?
QUEST: The committee judges the risks to achieving its balance of inflation and employment are roughly imbalance. Labor markets have eased,
unemployment rate has moved up, but remains low. Inflation -- oh, here we are. Here we go.
SOARES: Think very kind to that --
QUEST: Inflation -- I can't believe I get so excited reading the Fed's statement.
SOARES: Yes, but not the dot plot.
QUEST: No, but that's later. That's later.
(LAUGHTER)
QUEST: We have to save our excitement, not all the Christmases at once. Inflation has made progress towards 2 percent, but remains somewhat
elevated. Now, if you have somebody who is about to pour petrol on those flames, you are going to be elevated.
SOARES: Right, so, we shall be listening to Jerome Powell following in from that warning that Richard laid out. Richard, really appreciate --
QUEST: Thank you --
SOARES: You being with us, making sense of a very wordy statement from the Fed as per usual. Richard Quest will be back in about less than two hours
or so. Thank you very much, Richard.
QUEST: Thank you.
SOARES: Now, European leaders and the NATO chief are in Brussels this very evening, they're discussing peace plans and the potential deployment of
peacekeeping forces to Ukraine. The Ukrainian President said he believes the conflict could end as soon as next year. And tonight's meeting comes
just over one month before U.S. President-elect Donald Trump moves back into the White House, January the 20th.
Of course, Trump has pledged to bring a swift end to the conflict, but there is growing concern that he could pull U.S. support for Kyiv. And if
that happens, Zelenskyy may be forced to make painful concessions to Moscow. We now turn to Moscow and the aftermath of a deadly blast that
killed senior Russian General Igor Kirillov.
One day later, a suspect from Uzbekistan is in custody. The 29-year-old man seen here -- you're looking at him there, has been identified by Russian
state media. They published a video in which the suspect appears to confess to planting the bomb. But it is not clear if that confession was made under
duress.
Russian investigators say the man was recruited by Ukraine's security service. Our Frederik Pleitgen has more, and we want to warn you, some of
the video in this report is disturbing.
(BEGIN VIDEOTAPE)
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (on camera): Russian state media has named the suspect that the Russian investigative
committee says has been arrested as 29-year-old Uzbek citizen Akhmad Kurbanov. Now, the Russian authorities are saying that he is suspected in
connection with the assassination of Lieutenant General Igor Kirillov, who of course, was killed when leaving his apartment yesterday by a bomb blast.
And the Russian investigators are saying that they believe that Kurbanov was recruited by Ukraine's Intelligence service, the SBU. They say that he
was told to get an electric scooter and then was given a homemade bomb and parked the scooter with the bomb in front of the door that later, the
General, together with an aide, would come out of.
Now, as part of this plot, the Russians say that Kurbanov also got a car- sharing car -- rented a car-sharing car and parked it outside of the door of that building as well. They say that, that car was outfitted with a
camera that had a live feed that went straight to the city of Dnipro in central Ukraine where it was monitored by Ukrainian security services, and
when the General left his building, that is when the bomb was detonated.
Obviously, General Kirillov was killed yesterday when he left his apartment building. That blast seemed to be massive, when we were on the scene, we
saw that even in the houses adjacent to where this blast took place, that windows had been shattered there. Russian politicians, obviously irate
about all of this, the Kremlin came out and commented on all of this for the first time today.
The Kremlin spokesman saying that all of this shows that Kyiv, as he put it, does not shy away from terrorist methods. Fred Pleitgen, CNN, Moscow.
(END VIDEOTAPE)
SOARES: Now, thousands of North Korean troops are fighting in Russia's Kursk region, and what Ukraine says an attempt to help Moscow's army
reclaim land taken during Kyiv's offensive in August. But the soldiers appear to be suffering a heavy loss. A senior U.S. official says North
Korea is seeing several hundred casualties in the region, and according to Ukraine, at least, 13 North Korean soldiers were killed or wounded in
fighting over the weekend.
CIA Director Bill Burns is expected to soon join international mediators in Doha, who is trying of course, to broker a ceasefire as well as hostage
deal for Gaza. But even amid cautious hopes that an agreement may be reached, Israel is carrying out new deadly attacks in Gaza. Health
officials say airstrikes killed at least a dozen people overnight.
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Many were in a house that was hit in Beit Lahiya, triggering a fire, as you can see there. The director of a hospital near that house says children and
women are among the dead.
(BEGIN VIDEO CLIP)
HUSSAM ABU SAFIYA, DIRECTOR, KAMAL ADWAN HOSPITAL (through translator): A little while ago, one of the hospital's neighbors was targeted, which is a
house next to Kamal Adwan Hospital. It is a few meters away from us, unfortunately, until now, we have retrieved more than eight mortars, all of
them burnt. They've arrived in pieces, most of them are children, women and the elderly.
(END VIDEO CLIP)
SOARES: Elsewhere in Gaza, a strike hit a tent camp sheltering displaced families in Al-Mawasi, an area that had previously been designated a safe
zone. One survivor says the devastating scene speaks for itself. Turning to Syria, life is slowly returning to normal after the abrupt collapse of
Bashar al-Assad's regime.
For the first time since his fall more than a week ago, a domestic flight departed from Damascus airport. Also today, a U.N. special envoy called for
free and fair elections in Syria, saying there's a lot of hope that the country can now move toward democracy. The U.N. says about a million Syrian
refugees are expected to return in the first half of next year.
But of course, many challenges remain, including a tense situation in a U.N.-patrolled buffer zone between Syria and the Israeli-occupied Golan
Heights. Israeli troops moved into the area after Assad's regime fell and have resisted calls from the U.N. Secretary General to withdraw. Well, with
all manner, of course, of geopolitical issues, my next guest writes that U.S. President Joe Biden in many ways has given the incoming President a
gift.
Quote, "Donald Trump is a lucky man. The combination of allied courage and American support has inflicted serious losses on America's enemies and
created a serious strategic openings for the United States. The Iranian Axis of Resistance is a state -- in a state of collapse. Russia is facing
an economic crisis and is chewing through men and materiel in Ukraine at an unsustainable rate."
Those words from David French; an opinion columnist with the "New York Times". And David, welcome to the show, and we did just there mentioned
just the opening of your article from December 12th for the "New York Times". And there was Ukraine, Iran, but I think it's important to remind
our viewers right around the world, and we mentioned Gaza, but there's also the Houthis in Yemen.
There's a war in Sudan. Why do you think, David, Donald Trump is a lucky man? Because the world looks much more dangerous now than ever before. This
is something that we heard from the NATO chief just last week.
DAVID FRENCH, OPINION COLUMNIST, NEW YORK TIMES: Well, where he's benefiting from some of Biden's policies is that American enemies, in
particular, Iran, in particular Hezbollah, in particular Hamas and Syria, the Syrian regime has collapsed, have been substantially weakened. The Axis
of Resistance is in -- is in shambles.
Iran's strategic depth has been punctured, and then you add to that, that the Russian economy is straining, its interest rates are soaring over 20
percent. It's facing a crisis in material on the battle front. Now, of course, Ukraine is under intense pressure as well, but these developments
create strategic opportunities.
There's absolutely a lot of risk. Any time you have hot wars going, there is an enormous amount of risk. But America's enemies have been
substantially weakened in a way that we haven't seen in a generation. And that is a strategic opportunity for a shrewd American President.
SOARES: And then, given that, as you look at these crises, how do you think President-elect Trump will capitalize on these moments and decisions that
we make? We were just reporting, of course, that President Zelenskyy is in Brussels, important negotiations with European partners, clearly waiting to
see how President-elect Trump moves on this, whether the support will be there next year.
Of course, we also heard President-elect Trump talking about this. You mentioned it, what? At a CNN town hall, said he will end the war in 24
hours. And then he said this at his first press conference as President elect. Have a -- have a listen to it -- oh, we don't have it sort, I
apologize. He was talking about ending the war and finding there needs to be a deal.
We should be prepared to make a deal, that's all. Got to be a deal. Got to be a deal -- I'm quoting President-elect Trump. Too many people being
killed. That is a war, there's too many people, again, repeating himself. Got to make a deal and Putin has to make a deal, too. So, what kind of deal
are we potentially looking at? And what are the risks for Ukraine and the European partners and U.S. influence here?
FRENCH: We're at a moment of real risk with Trump and Ukraine. I have -- I believe Trump is much more suited and much more disposed towards placing
intense pressure on Iran. But the real question going into this new Trump term is, is he going to throw Vladimir Putin a lifeline? He has an
opportunity to double down and support for Ukraine, provide Ukraine with a lifeline that it needs in its moment of difficulty on the battlefield, and
put more pressure on Russia.
[14:15:00]
But I'm very concerned with his -- the messaging he's sending now where he's going to press for a deal right away. Vladimir Putin at the moment has
the battlefield advantage. And if you press for a deal right away, any deal that Vladimir Putin is going to agree to, is going to be one that's a loss
for Ukraine, that would -- that would reward Russian aggression.
And the secondary effects of that could be absolutely catastrophic. So, one of the issues that we have here is that Donald Trump has an opportunity,
but his longstanding hostility that he's expressed to Ukraine raises real concerns. The mockery surrounding him in the American MAGA universe of
Ukraine raises concerns.
So, he has an opportunity to put intense pressure on Russia, but it appears more likely he's going to put intense pressure on Ukraine. Now, it remains
to be seen how this will work if that actually happens. But so far, the indications are not promising. And one of the reasons why I put my piece
out there was to demonstrate to people that Trump has options other than pressuring Ukraine.
Russia is in a -- and is in a difficult position as well. Now, is the time to pressure Russia, not Ukraine. But Trump may well choose the wrong
course.
SOARES: And given -- you know, you were talking about hostility, David, and given everything we've heard from him and the concerns that he said, you
know, he's -- what did he say that he was a great salesman. I mean, Putin surely will be looking at this and thinking, well, he needs -- he needs to
believe that Trump will and the U.S. won't abandon Ukraine, right?
Looking at the language, that doesn't suggest that so far, and that surely it would be the concern. So, let's leave Ukraine, I wonder if we can look
at some of the other foreign policy issues that we might see from the President-elect. You talked about a weakened enemy in your piece, David.
You only have to look at Syria, Bashar al-Assad, as we just played there.
We've also seen the impact that's had -- that's come from Ukraine, a weakened Hezbollah, right? And how they're all interlinked. And yet, you
know, we have a weakened, some may say, weakened Iran, weakened status of Iran, but Trump has recently said we need to stay away as well from Syria.
Is he squandering an opportunity here?
FRENCH: That's another point of concern. I mean, this is a -- if Syria is going to settle out in a fashion that is satisfactory to American national
interests, we can't pull all of our troops out and not withdraw from engagement in that region. It is a very complicated situation in Syria
right now. It is not so neat and clean as old rulers out, new rulers in.
And there's indication that Turkey might be assembling forces to take on American allied, Kurdish forces in northern Syria. There are -- there is
more than one faction in play. You have Israel bombing Syrian military sites to weaken Syria. So, there are a lot of factors in play. And this is
exactly the wrong time to lean out of the international scene.
And so, again -- once again, you've got another situation just like in Ukraine, where there's an opportunity and a risk side-by-side. The
opportunity is to lean in, to re-order at least parts of the Middle East so that the Iranian influence is waning for a generation. The risk is you lean
out and let chaos take its place with unpredictable results.
And so, time and again, you have a dangerous situation where current American policy has created opportunities, but Iran, alongside the
opportunities are risks, and unfortunately, a lot of Trump's instincts, which are isolationist, which are to pull away a lot of those instincts are
exactly wrong for this moment. This moment requires engagement, not withdrawal.
SOARES: And then given that, and as we look to next year and we look at foreign policy, what that foreign policy may look like, I wonder what you -
- what you can glean here, David, from his national security picks, because you called them flawed.
FRENCH: Yes, well, one of the principal problems with this national security picks, particularly Pete Hegseth and Tulsi Gabbard, Hegseth
nominated for Secretary of Defense, Gabbard nominated to run -- to be director of National Intelligence. Both of these picks are people who seem
to be more focused on dealing with and responding to internal American political controversies, and not in dealing with external American enemies
or strategic rivals.
These are picks designed to take on Trump's enemies within the U.S., and that is a complete misdirection of where their focus needs to be.
[14:20:00]
Pete Hegseth, for example, one of his calling cards is, he wants to take on so-called woke forces in the military. I would say that, that is one of the
lower priorities right now in the United States and across the world, dealing with diversity, equity and inclusion training in the American
military. We have to be thinking about how to deter China.
We have to be thinking about how do we deter Iran from escalating in this current environment. We have to be thinking about what kind of resources
can be deployed to Ukraine, what kind of resources can be supplied to Ukraine -- I'm sorry, these are major strategic questions for which a "Fox
News" host with a scandalous past and an expertise in American culture war is not the right pick for Secretary of Defense.
SOARES: And in 30 seconds or so, because we're running out of time. What conflict -- foreign policy, you think he will focus on first or has the
best chance of succeeding? A man behind the "Art of the Deal", I'm sure he wants to sell that.
FRENCH: I think what he'll focus on first is likely Ukraine, and that's --
SOARES: Yes --
FRENCH: Not where he has the best chance of succeeding given his previous comments. But where I do think he has a better chance of succeeding is, he
has been hawkish on China traditionally. And then -- so, I do think there's a real chance that he will continue to deter Chinese aggression. I do think
there's a greater openness to creative strategic decisions surrounding China. When it comes to Russia, that's where I have my maximum concern.
SOARES: David French, great to have you on the show, please come back, fantastic analysis. David French there. Thank you, David --
FRENCH: Thank you so much. And still to come tonight, police in Wisconsin are searching for a motive in Monday's deadly school shooting. We'll tell
you what we now learned about the suspect. That is next.
(COMMERCIAL BREAK)
SOARES: Police in Wisconsin are trying to determine the motive behind Monday's deadly school shooting, and people in the community are turning to
one another, both for comfort as well as support. A vigil was held on Tuesday night in the city of Madison. Police have identified 15-year-old
student Natalie Rupnow as the suspect.
[14:25:00]
They believe she killed a teacher and fellow student and injured six others at Abundant Life Christian School. Then she apparently turned the gun on
herself. The "Washington Post" says the suspect had a, quote, "turbulent home life and was enrolled in therapy." Our Natasha Chen has more for you.
(BEGIN VIDEOTAPE)
NATASHA CHEN, CNN CORRESPONDENT (on camera): We are looking at some court documents right now that have already been reported by the "Washington
Post", where the "Post" have reported records of this shooter's parents having been divorced and remarried multiple times, of a turbulent
childhood, she experienced that she'd been enrolled in therapy, sometimes forced to move between her parents homes every 2 to 3 days.
Neither parent has responded to requests for comment by the "Washington Post" or by CNN. But police say that they are cooperating with them as far
as the investigation is concerned. Now, we do want to show you a photo that we've seen posted apparently by the shooter's father. There you see, she is
on a shooting range in Dane County.
She's seen wearing a black shirt with the name of a band, KMFDM, that's a German industrial rock band whose lyrics have also been cited by the gunman
who committed the Columbine School shooting in 1999. Now, at the time of Columbine, that band had released a statement expressing sympathy for the
victims and actually saying to "Reuters" that they -- their lyrics were intended to stand against violence.
These are all the kinds of details that police are looking into right now in that post of that photo, as someone had commented, is that your child?
And Rupnow's father apparently said, sure is. We joined this shooting range and have been loving every second of it. So, again, lots to comb through.
In the meantime, like you showed at that vigil, the community is just reeling from this pain. We had a father tell CNN yesterday about what his
third grade son witnessed in the classroom. Here he is.
KELLEN LEWIS, FATHER OF FOUR STUDENTS AT ABUNDANT LIFE CHRISTIAN SCHOOL: Students knew what to do, and they hid in the corners of their classrooms.
My third grade son mentioned that his teacher stood between the door and where the kids were hiding with scissors, ready to do whatever they had to
do to defend the kids in that class.
CHEN: Incredible, and there are others who are protecting the privacy of the victims. But sharing that the teacher who was killed was kind and
caring. Another set of parents told us that she loved her school, loved her kids, and loved teaching.
(END VIDEOTAPE)
SOARES: Natasha Chen there. Well, an extradition hearing is set for Thursday for the suspect in the murder of UnitedHealthcare CEO. Luigi
Mangione is jailed in Pennsylvania and prosecutors want him back in New York. He's not expected to fight extradition. On Tuesday, if you remember,
an 11-count indictment against Luigi Mangione was unsealed by Manhattan prosecutors.
He faces a first degree murder charge. Manhattan District Attorney Alvin Bragg and other top law enforcement officials said Mangione intended to
intimidate and evoke terror with the killing. The suspect also faces two counts of second degree murder along with weapon and forgery charges.
And still to come right here on the show, we are going live to Washington. We expect the Fed Chair Jerome Powell, to deliver remarks in the next few
minutes. We'll listen to what he says with what increases he tells us about what may come next in terms of rates. We're keeping an eye also on the Dow.
Plus, a major development in the case over the TikTok ban in the United States. We'll have that story for you after the short break. You are
watching CNN.
(COMMERCIAL BREAK)
[14:32:01]
SOARES: And Fed Chair Jerome Powell is speaking to you there after the decision to top of the hour to cut rates by a quarter percentage point.
Let's listen in.
JEROME POWELL, U.S. FEDERAL RESERVE CHAIR: -- activity in the housing sector has been weak. Overall, improving supply conditions have supported
the strong performance of the U.S. economy over the past year.
In our summary week and on the projections, committee participants generally expect GDP growth to remain solid, with a median projection of
about 2 percent over the next few years.
In the labor market, conditions remain solid. Payroll job gains have slowed from earlier on the year, averaging 173,000 per month over the past three
months. The unemployment rate is higher that it was a year ago, but at 4.2 percent in November, it has remained low. Nominal wage growth has eased
over the past year, and the jobs to workers gap has narrowed.
Overall, a broad set of indicators suggests that conditions in the labor market are now less tight than in 2019. The labor market is not a source of
significant inflationary pressures. The median projection for the unemployment rate in the SEP is 4.2 percent at the end of this year and 4.3
percent over the next few years.
Inflation has eased significantly over the past two years, but remains somewhat elevated relative to our 2 percent longer run goal. Estimates
based on the Consumer Price Index and other data indicate that total PCE prices rose 2.5 percent over the 12 months ending in November, and that
excluding the volatile food and energy categories, core PCE prices rose 2.8 percent.
Longer-term inflation expectations appear to remain well anchored, as reflected in a broad range of surveys of households, businesses, and
forecasters, as well as measures from financial markets.
The median projection in the SEP for total PCE inflation is 2.4 percent this year, and 2.5 percent next year. Somewhat higher than projected in
September. Thereafter, the median projection falls to our 2 percent objective.
Our monetary policy actions are guided by our dual mandate to promote maximum employment and stable prices for the American people. We see the
risks to achieving our employment and inflation goals as being roughly in balance, and we are attentive to the risks on both sides of our mandate.
At today's meeting, the committee decided to lower the target range for the federal funds rate by a quarter percentage point to four and a quarter to
four and a half percent. We've been moving policy toward a more neutral setting in order to maintain the strength of the economy and the labor
market while establishing further progress and -- sorry, enabling further progress on inflation.
With today's action, we have lowered our policy rate by a full percentage point from its peak. And our policy stance is now significantly less
restrictive. We can therefore be more cautious as we consider further adjustments to our policy rate.
[14:35:00]
We know that reducing policy restraint too fast or too much could hinder progress on inflation. At the same time, reducing policy restraint too
slowly or too little could unduly weaken economic activity and employment.
And considering the extent and timing of additional adjustments to the target range for the Federal funds rate, the committee will asses incoming
date, the evolving outlook and the balance of risks. We're not on any preset course.
In our summary of economy projections, FOMC participants wrote down wrote down their individual assessments of an appropriate path for the federal
funds rate based on what each participant judges to be the most likely scenario going forward. The median participant --
SOARES: You have been listening there to Fed Chair Jerome Powell giving his analysis of the decision to cut Rates by a quarter percentage point. We
brought you that news at the top of the hour. He said they're laser focused on inflation, said economy remained strong. He said inflation has eased,
but remains elevated above the bank's, of course, 2 percent target.
He did say we're not on any preset course, which gives them sort of signal over the next year and how they may move. But he did say that over the last
year, this is a third rate cut since September. They've lowered policy roughly by 1 percent.
If we just leave that there, I want to show you before we go, the stock market, because at the top of the hour, we have brought you the breaking
news. And just to point out, this is very much priced in this cut. The numbers was on the green. Can we bring up the -- there we go.
Now, they've turned, we're seeing the Dow Industrials down half a percent, NASDAQ also down seven-tenths and S&P 500 down half a percent. So, although
it's priced in, the markets will be listening to Jerome Powell right now and the questions he'll take after that for some sort of signal of how the
Fed may move next year.
Although, he did say we're not in a preset course it's what he says and it's kind of reading a bit of the tea leaves as how he may move and those
pressures over inflation you know, and what that may mean. So, we're keeping an eye on those markets to see how they move. But -- and we'll keep
an ear out, of course, for Jerome Powell. If there are any new lines, we will, of course, bring them to you right here on CNN.
I want to stay in the United States, because the U.S. Supreme Court has agreed to hear arguments from TikTok next month over its potential ban.
Justices will decide whether a controversial ban on the social media app violates the First Amendment. And this adds a major case to the docket just
before President-Elect Donald Trump takes office. Our Joan Biskupic has more.
(BEGIN VIDEOTAPE)
JOAN BISKUPIC, CNN CHIEF SUPREME COURT ANALYST: Yes, major news at the U.S. Supreme Court today. In a First Amendment battle that could affect about
170 million Americans who use the TikTok platform. The nine justices have agreed to hear the company's challenge to a federal law that would be Ban
it from the United States. The court will hear the case on January 10th, and the justices will really be racing against the clock.
Under the disputed federal law. TikTok could be banned in America on January 19th. The controversy traces to last April when Congress passed and
Joe Biden signed a ban on the popular social media platform. The law was responding to years of concern in Washington that TikTok's Chinese parent
company posed a national security risk. The government argues that China could covertly manipulate the app to affect content and also to access
user's data.
TikTok Incorporated is an American company, but the ultimate parent is ByteDance, which has Chinese ownership. The TikTok platform would be banned
in the U.S. unless it is divested of that Chinese ownership. If that doesn't happen, TikTok would lose the opportunity to be available through
platforms and apps here.
TikTok has argued that the law unfairly singles it out and violates speech rights. The company lost in an important federal court below, an appellate
court, which said the federal government had made a good case on national security grounds.
We'll see whether the federal government can do the same before the justices. It will be the last major argument by the Biden administration at
the High Court. Again, the law is set to take effect in about a month on January 19th, which is a day before Donald Trump's inauguration and his
return to the White House.
(END VIDEOTAPE)
SOARES: Now, CNN has learned that the U.S. House Ethics Committee will now release its report on former Florida Congressman Matt Gaetz. Last month,
the panel shelved the report, but in an apparent reversal, the committee voted in secret that this month to make the investigation public, and that
is according to multiple sources.
[14:40:00]
Gaetz was in the running to be the next attorney general until numerous allegations surfaced, including sexual misconduct.
Now, saying Donald Trump is a cruel and vindictive man. Former U.S. Representative Liz Cheney is offending her work on the January 6th
Committee. Her Tuesday statement comes despite calls from the president- elect for her to be prosecuted and U.S. House Republicans seem to agree after wrapping up their own report on the riots, concluding Cheney is the
one that should be investigated.
And these developments seem to fit from stated desire to punish his perceived enemies. Cheney, who is a daughter of a former vice president,
Dick Cheney, was once a rising conservative star. And that was until she was kicked out of the Republican leadership after a vote to impeach Trump.
She also campaigned, if you remember, for a Democratic presidential nominee, Kamala Harris.
Let's go to Alayna Treene, who's in Palm Beach in Florida. And, Alayna, I wonder if you can just explain to our viewer, just take a step back,
because I read that Trump said that she should go to jail, and then he amplified this, from what I understand, on social media, calling for a
televised military tribunal for her, and then today, adding she could be in a lot of trouble. On what grounds is he saying this?
ALAYNA TREENE, CNN REPORTER: Well, first of all, I will walk you through some of this timeline because, really, we know that Donald Trump,
throughout his time on the campaign trail had really dangled this idea that if he were elected, he would be justified to seek political retribution or
retribution against his political opponents.
And this House Ethics or the submit subcommittee vote -- excuse me, this House Subcommittee report essentially is the opening, I think, that many
people were looking for and it's giving Donald Trump this opening to potentially go after and prosecute Liz Cheney. The report itself says that
they believe that the FBI should investigate her role on the January 6th Committee.
Now, I will read for you what Donald Trump said about this because he did post to Truth Social very early in the morning, shortly after 3:00 a.m.,
this is what he said. He said, quote, "Cheney could be in a lot of trouble based on the report that was released by Republicans."
But look, I think the timing of this is very notable, and you mentioned, you know, some of the things he has said in the past, but even just
recently after being elected president, he went on Meet the Press with NBC and said that he believes not only Liz Cheney, but all of the members of
that January 6th Committee should go to jail.
But Cheney in particular is someone that Donald Trump has really fixated on. Not only did he bring up her name specifically in that interview, but
he also has brought her up repeatedly over the last couple of years and really throughout the latter half of his campaign, his -- being on the
campaign trail. And part of that is just Liz Cheney has really gotten under his skin. She is a Republican. She's also very prominent Republican, given
that she is the daughter of the former Republican vice president, Dick Cheney.
Now, I do as well just want to get into why some of this matters. One, of course, because Donald Trump is going to be president, but also because of
who he has selected to lead the FBI. This report says that they think that whoever is in charge of the FBI should be the one charged with looking into
and potentially prosecuting Cheney.
Now, we know that if Donald Trump has his way Kash Patel, who is a fierce Trump loyalist, who was also in the past talked about wanting seek
retribution on political opponents, also talked about going after the media, he is going to be the one, if Trump has his way, who could be
leading this investigation, and that's why it's being taken so seriously right now by a lot of people in the political sphere.
Now, I do want to get into a little bit for your second part of that question, Isa, what this report says, and whether it's based in fact at
all. So, essentially, this report claims that Cheney colluded with a quote, "star witness Cassidy Hutchinson," she is someone who previously worked in
Trump's former administration but then testified against him during the House Committee proceedings. They also claim that Cheney should be
investigated for potential criminal witness tampering, and also that Cheney used the January 6th Select Committee as a tool to attack President Donald
Trump.
Now, to get to your question of, is there any fact to any of this? I will say this is something that Donald Trump, and in my conversation with all of
his advisers really, have believed for some time. However, we know that a lot of this is baseless, or has not been proven. A lot of this is not fact.
And so, it's very unclear right now where, you know, they believe a lot of this.
We know Cheney has denied this, and also, I would remind you as well, that most members of Congress, or all members of Congress, but in most cases, do
have immunity from these types of prosecutions and investigations. So, that's one thing to keep in mind.
But all in all, this has really been something that many Republicans, but particularly Donald Trump, has been fixated on. He still harbors a lot of
resentment toward Cheney, but also that entire panel who sat and investigated what happened on the capital on January 6. He's a lot of
resentment toward them, and there's definitely, I think, a very real possibility that he -- but also who is put underneath him to run these
different departments like the FBI, like Kash Patel could really open up an investigation into this and potentially seek legal action. Isa.
[14:45:00]
SOARES: Very concerning indeed. If we're looking potentially at Trump laying the groundwork for political retribution. Alayna, really appreciate
you, you know, walking us through this every step of the way and every comment we've had. Really important facts are incredibly important. Thank
you, Alayna, as always.
And still to come tonight, the controversial bill that's causing concern in Ghana. We'll bring you the details with our Larry Madowo. That's next
(COMMERCIAL BREAK)
SOARES: Aftershocks are continuing to rattle Vanuatu the day after a powerful 7.3 magnitude earthquake hit the South Pacific Island nation. 14
people have been confirmed dead and that number is expected to rise. The quake caused a network outage and damaged many buildings including the U.S.
embassy. Rescue efforts are continuing and a state of emergency is in place in the worst impacted areas.
Authorities and aid workers in the French territory of Mayotte are working around the clock to keep the peace and prevent the spread of disease after
the worst cyclone to hit the region in at least 90 years. At least 31 people are dead and more than 1,400 injured, and that is according to a
local mayor. But those numbers could rise significantly as crews move further into areas blocked by debris.
Much needed supplies began arriving on Tuesday. The French government expects half of the islands water supplies will be restored soon, and
nearly all of it by early next week. We will, of course, stay across that story for you.
Now to Ghana, where the Supreme Court has today rejected two challenges to an anti LGBT bill. It is one of Africa's most restrictive pieces of
legislation, increasing a crackdown on the rights of LGBT people, and it will see anyone promoting or indeed supporting LGBT identities or
activities receiving a prison sentence of up to five years.
The bill was approved unanimously back in February, but President Nana Akufo-Addo has delayed signing it into law while these challenges were
being filed. Our Larry Madowo has more for you.
(BEGIN VIDEOTAPE)
LARRY MADOWO, CNN INTERNATIONAL CORRESPONDENT: If it is signed into law, this bill will be one of the strictest anti-LGBT laws anywhere in Africa,
and that is saying something.
[14:50:00]
Though its name is much more innocent sounding, the Human Sexual Rights and Family Values Bill, that's its official name, and it was supported by
Christian, Muslim, and traditional leaders in Ghana, it passed unanimously in Parliament, that explains just how popular it is. And many in Ghana are
supportive of the Supreme Court essentially deciding that they cannot stop it until it's officially a law. I've been reporting in Ghana twice this
year, and I know that many people support this bill.
But activists, those the work in the LGBT human rights space say even before it has become a law there are already serious consequences.
(BEGIN VIDEO CLIP)
ABENA TEKYLWAA MANUH, SENIOR FELLOW, CENTRE FOR DEMOCRATIC GOVERNANCE: It is a sad day and it has implications for the LGBT community. Even without
the passage of the bill people have been attacking members of a certain community. And I think that just this pronouncement, this kind of
formalism, this resort to constitutionalism, actually put at risk the life and health of certain members of the community. And, of course, some of us
who are human rights defenders.
(END VIDEOTAPE)
MADOWO: Ghana's outgoing president, Nana Akufo-Addo, has less than three weeks left in office. So, if he does not sign it, he would kick the can
down the road and leave that as a problem for the incoming administration of President-Elect John Mahama.
Amnesty West Africa, asking him not to sign it into law, saying it is not just infringed on the rights of one group, but on the rights of all. But
one of the lawmakers who was the biggest supporters of this bill helped bring it to Parliament. Sam George tweeted that it is done. To God be the
glory.
Gay sex in Ghana was already punishable with up to three years in prison, but this makes it even harder to even identify as LGBTI in Ghana, it
criminalizes the promotion of LGBT rights in the country, and that is why it's getting a lot of criticism. However, the finance ministry in Ghana had
already warned that if this were to become law Ghana risk losing out on $3.8 billion from the World Bank, another $3 billion from the IMF. These
are funds that the country badly needs for an economic revival. But for the men on the street, they think it needs to become law.
Larry Madowo, CNN, Nairobi.
(END VIDEOTAPE)
SOARES: Well, thanks to Larry for that report. We're going to stay on top of that story for you. We're going to have more after the break, after
this.
(COMMERCIAL BREAK)
[14:55:00]
SOARES: Two NASA astronauts stuck in orbit have had their return to Earth delayed yet again. Astronauts Butch Wilmore and Suni Williams had been
stranded, if you remember, on the International Space Station since June this year, when they launched for what was supposed to be about a week-long
trip. Their stay was extended after NASA deemed the Boeing Starliner spacecraft that brought them to space were not safe to travel back to
Earth. Now, their homecoming is postponed until at least late March 2025 while they wait for a new Dragon spacecraft.
In the meantime, China says two of its astronauts have completed a nine- hour spacewalk. It is the longest spacewalk ever done, beating the previous record held by the United States. That was set back in 2001 of eight hours
and 56 minutes. It is the latest milestone in China's ambitious space program as they continue to become major players, of course, in our solar
system.
And that does it for us for tonight. Do stay right here, Newsroom with Jim Sciutto is up next. Thanks for your company as always. I'll see you
tomorrow.
(COMMERCIAL BREAK)
[15:00:00]
END
