The Federal Reserve has confirmed that inflation remains elevated, leading to a pause in interest rate changes for a fourth consecutive meeting. While the Fed's monetary policies don't directly affect Social Security, they influence inflation dynamics, impacting the Cost-of-Living Adjustment (COLA) for benefits. Older Americans, who rely heavily on Social Security, are particularly interested in potential increases for 2026 after a lackluster 2.5% adjustment in 2025. As interest rates remain steady, a clearer picture of inflation trends may emerge, offering hints for future COLA adjustments.
The Fed's decision to hold interest rates steady signals potentially better news for next year's Social Security COLA, crucial for millions of retirees.
With inflation remaining elevated, many retirees are anxiously awaiting the Cost-of-Living Adjustment for 2026 to see if it will surpass the disappointing 2.5% from 2025.
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