Could the 2023 Social Security COLA Make Inflation Even Worse?
Retirees are looking forward to next year's cost-of-living adjustment (COLA) for Social Security, and it's easy to see why.
Beneficiaries are set to get their biggest Social Security increase in 40 years, as checks for recipients are on track to rise 8.9% as of the latest inflation report. That additional income should go a long way to helping seniors handle additional costs for housing, food, transportation, and utilities, among others.
However, the hike in Social Security payments could be problematic for the economy in other ways. That's because the COLA will pump billions of dollars in the economy at precisely the time when the Federal Reserve is trying to reduce liquidity and ramping up benchmark interest rates as fast as it has in nearly 30 years.
Source Fool.com
