The Federal Reserve's benchmark, short-term rate has held a 23-year high of 5.25% to 5.5% since July 2023. This pause follows aggressive rate hikes dating back to March 2022, a period in which the central bank raised rates 11 times. The goal, at that time, was to make borrowing more expensive to cool down the economy and surging inflation.

After raising its key interest rate for nearly two years to tamp down growth and rising prices, economists expected the Fed to cut the rate to bring it more in line with slowing inflation. However, estimates have been scaled back with most rate cut predictions shifting to two, one or none after inflation accelerated early this year.

But is a rate cut incoming? Following July's meeting, Federal Reserve Chair Jerome Powell said, "The economy is moving closer to the point where it will be appropriate to reduce our policy rate. That time is drawing near. That time could be in September if the data support that."

Ahead of this week's meeting, this is the Federal Reserve's schedule for the remainder of the year.

Fed meeting live updates: Is it time to cut interest rates?

When is the next Fed meeting?

The next Federal Reserve meeting will be held from Sept. 17 through 18.

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Federal Reserve 2024 Meeting Schedule

• Jan. 30–31

• March 19–20

• April 30–May 1

• June 11–12

• July 30–31

• Sept. 17–18

• Nov. 6–7

• Dec. 17–18

Why does the Fed raise interest rates?

The Fed is the nation's central bank, leaving it in charge of monetary policy. This means the Fed sets interest rates and controls the money supply.

Its dual mandate is to promote "maximum employment and stable prices in the U.S. economy." Stable prices mean the Fed tries to keep inflation in check, with its long-term annual target at 2%.

To control inflation, one of the Fed's main tools is the federal funds rate, which is the rate banks charge each other for overnight loans. If that rate rises, banks generally pass on their additional cost.

Even though the Fed does not directly control all interest rates in the country, when it raises the fed funds rate, other interest rates eventually follow, including adjustable-rate mortgages, credit cards, home equity lines of credit, and other loans.

What is inflation?

Inflation is a generalized rise in prices, affecting different goods and services throughout the economy, such as gas, rent and food.

It can be caused by several factors, such as more people spending money on goods or services that are not readily available to meet that demand. That allows producers and service providers to raise prices without worrying about a significant loss in sales.