The Federal Reserve may have just given retirees the biggest indication yet that their 2025 cost-of-living adjustment (COLA) may be quite substantial.

The Fed is tasked with a dual mandate: to maximize employment while maintaining stable prices. Over the past three years, it's been in a battle with ongoing inflation. Its biggest goal right now is to push inflation below 2%.

The Federal Open Market Committee (FOMC) recently met and released a statement on May 1. At the top of the statement, the FOMC said, "In recent months, there has been a lack of further progress toward the Committee's 2 percent inflation objective." In other words, inflation just isn't coming down as quickly as hoped.

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Source Fool.com