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The Fed’s rate cut may slightly affect 2025 Social Security COLA, expected below 3%.
The Federal Reserve's December rate cut may influence the upcoming Social Security cost-of-living adjustment (COLA), but the exact impact remains uncertain.
While lower interest rates can affect inflation trends, the final COLA is determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), not directly by the Fed’s decisions.
Experts anticipate a modest COLA increase for 2025, likely below 3%, but official figures are pending.
Retirees should expect updates in early 2025.
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El recorte de tasas de la Fed puede afectar ligeramente el COLA de la Seguridad Social de 2025, que se espera que sea inferior al 3%.