Fiddling With Social Security Benefits Could Worsen U.S. Inflation

One of Donald Trump’s first acts upon returning to the White House was appointing Michelle King as acting commissioner of the Social Security Administration (SSA)—a move that could have significant consequences for Social Security benefits, reported Keith Speights for Motley Fool.

Any cuts to Social Security benefits would require Congressional approval and Trump’s signature.

King has been with the SSA since 1994, starting as a bilingual claims representative before working her way up to deputy commissioner for operations.

Meanwhile, Elon Musk has claimed—without evidence—that the government pays more than $100 billion annually to individuals without Social Security numbers. However, any cuts to Social Security benefits would require Congressional approval and Trump’s signature.

Social Security cost-of-living adjustments (COLAs) are tied to inflation, meaning that any Trump policies that increase inflation could also raise future COLAs.

Trump’s trade and immigration policies could directly impact inflation:

• He has imposed 25% tariffs on all steel and aluminum imports and 10% tariffs on most Chinese products—a move that many economists warn will drive up inflation.

• A crackdown on immigration could shrink the labor supply, leading to higher prices for goods and services, further fueling inflation.

The extent to which these policies will impact inflation and Social Security benefits remains uncertain, but the risks are high.