The first Federal Reserve meeting of 2024 saw the key interest rate left unchanged for a fourth consecutive time.

The pause followed aggressive rate hikes dating back to March 2022, a period in which the central bank raised rates 11 times to a 23-year rate high of 5.25% to 5.5%. The goal was to make borrowing more expensive to cool down the economy and surging inflation.

Yet after raising its key interest rate for nearly two years to tamp down growth and rising prices, the Fed this year is expected to reduce the rate to bring it more in line with slowing inflation. Some economists predict four to five quarter-point rate cuts in 2024, while others forecast just two.

Fed officials have projected that the federal funds rate will be lowered by three-quarters of a percentage point, leading to a range of 4.5% to 4.75% by year's end, according to their median estimate.

Looking ahead, this is when the Federal Reserve plans to meet next.

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

When is the next Fed meeting?

The next Federal Reserve meeting will be held from June 11 through 12.

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.

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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.