What just happened and what to do next

From open enrollment in Medicare starting this week to signs of another rate cut, here’s some news that could impact your wallet this week, and how you can prepare your finances for next week.

Next week, the Bureau of Labor Statistics will release the 2026 Social Security Cost of Living Adjustment (COLA) announcement. Although the government shutdown has temporarily halted most activities at the Bureau of Labor Statistics, some staff have returned to release key inflation data used to calculate the annual COLA.

On October 24, the same day the Bureau of Labor Statistics’ inflation report is scheduled to be released, the Social Security Administration will also announce the 2026 COLA, a Social Security spokesperson told CNBC. This information will help Social Security beneficiaries with next year’s budget, especially the 22 million seniors who rely solely on their benefits for income.

Open enrollment for Medicare began this week

Enrollment in Medicare plans opened Wednesday and will continue through December 7. Many cost and coverage aspects of Medicare plans are expected to change in 2026 compared to this year.

For example, premiums for many Medicare Advantage and Part D beneficiaries’ prescription drug plans will be cheaper. However, other costs for Medicare Part B and Part D are expected to increase and offset the decrease in premiums.

What to do next

During the open enrollment period, Medicare beneficiaries can choose to switch between original Medicare (Parts A and B) and a Medicare Advantage plan, which is distributed by private health insurance companies. They can also choose to add additional coverage to help them pay for prescription drugs or health care costs.

Medicare Advantage beneficiaries and those with Part D should see their insurer’s annual change notice, which was supposed to be sent in September. This will identify changes in coverage and costs and indicate whether your insurer is among several that have reduced the Medicare Advantage plans it offers for 2026.

Knowing what will change in their Medicare plan for next year can help beneficiaries know if they should enroll in a different type of plan.

Signs point to a rate cut at the next Federal Reserve meeting

Although Federal Reserve members disagree on how to handle interest rate cuts, more signs this week point to a rate cut coming soon.

The Fed’s Beige Book provides insight into how business and community leaders feel about the economy. In a report released this week, several companies said they were at a standstill in hiring. While mass layoffs are being avoided, many business leaders are not adding jobs.

The tariffs have partly created uncertainty for businesses and led to many avoiding hiring. Import taxes also increase costs, and inflation remains higher than ideal.

Fed officials have reached a crossroads. One side wants to lower the benchmark interest rate to help businesses resume hiring, and the other is concerned about inflation and wants to lower interest rates slowly.

While the Fed has not confirmed what it will do at its meeting in two weeks, investors widely expect a rate cut. The headline inflation report, which was previously delayed due to the government shutdown, will be released in a week and could provide more context for what the Fed will do.

This week, Federal Reserve Chair Jerome Powell said the economic data they have looks similar to what was reported in September, when members decided to cut interest rates for the first time this year.

What to do next

If the Fed lowers its trigger rate, other borrowing costs, such as interest rates on credit cards and auto loans, will fall. This would also lead to lower returns on investments such as certificates of deposit and high-yield savings accounts.

With interest rates likely to fall further, it may be a good time to put some cash into a high-yield savings account or CD. A CD could maintain higher interest rates even if the Fed makes further cuts.