After nearly two years of increasing its key interest rate to curb economic growth and inflation, many economists anticipated that the Fed would soon reduce the rate to align it with the slowing inflation trend. However, these predictions have been moderated, with expectations now leaning towards either one or no cuts instead of two, as inflation rose once more earlier this year.

Is a rate cut on the horizon? After the July meeting, Federal Reserve Chair Jerome Powell remarked, “The economy is nearing the point where reducing our policy rate would be appropriate. That moment is approaching and could occur in September if the data supports it.”

Looking ahead to this week’s meeting, here’s the Federal Reserve’s schedule for the rest of the year.

When is the next Fed meeting?

The next Federal Reserve meeting is scheduled for September 17–18.

2024 Federal Reserve Meeting Dates

• January 30–31
• March 19–20
• April 30–May 1
• June 11–12
• July 30–31
• September 17–18
• November 6–7
• December 17–18

Why does the Federal Reserve increase interest rates?

The Federal Reserve serves as the country’s central bank, managing monetary policy. This role involves setting interest rates and regulating the money supply.

The Fed’s dual responsibility is to ensure “maximum employment and stable prices in the U.S. economy.” This focus on stable prices means the Fed works to control inflation, maintaining a long-term annual target of 2%.

To manage inflation, one of the Fed’s primary tools is the federal funds rate, which dictates the interest banks charge each other for overnight loans. When this rate increases, banks usually pass along these higher costs to consumers.

Though the Fed doesn’t directly set all interest rates across the country, any increase in the federal funds rate typically results in higher rates for various loans, including adjustable-rate mortgages, credit cards, and home equity lines of credit.

What is inflation?

Inflation refers to the general increase in prices for various goods and services across the economy, influencing items like gas, rent, and food.

This phenomenon can occur due to multiple factors, such as increased spending on desirable goods that are in limited supply. Producers then have the opportunity to raise prices without fearing a major drop in sales.

Additionally, inflation may arise from supply shortages. If demand surpasses the available supply for a product or service, wholesale costs for manufacturers or retailers may rise, which they then pass on to consumers through elevated retail prices.