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Interest rates and future COLAs: A source of concern for beneficiaries
There’s been a fair amount of hype around the recent Federal Reserve actions on key interest rates, most recently a mid-December quarter-point cut. That, of course, was a welcome move for investors, even though its impact had already been largely baked into financial markets. What remains to be seen, then, is the effect on overall inflation in the year ahead, and that’s where seniors’ concerns arise. With the 2026 2.8 percent COLA providing some measure of relief for seniors, eyes are now on whether the Federal Reserve’s target for inflation–2.0 percent–is in the future and, if so, will lower prices offset the likely lower COLA next year?
Fine-tuning the U.S. economy is perhaps both art and science, as explained in a post by ECOticias.com. At this point, it’s a wait-and-see environment, with the 2027 COLA calculation still 10 months away and a lot of economic activity yet to occur. In the meantime, the ECOticias post provides guidance for seniors on how to potentially mitigate financial issues related to a COLA that falls short of actual costs. Check the post out here…