We may earn commission from links on this page, but we only recommend products we believe in. Pricing and availability are subject to change.
When’s the next Federal Reserve meeting? The FOMC — and how it affects your finances
The Federal Reserve meets for its fourth two-day Federal Open Market Committee session of 2024 on June 11 and June 12, 2024.
At the conclusion of its FOMC session on May 1, 2024, the Federal Reserve announced that it's leaving the federal funds target interest rate at a 23-year high of 5.25% to 5.50%, marking the sixth consecutive time the Fed's held the benchmark rate unchanged since July 2023. The hold is part of the Fed's continued focus on getting the inflation rate closer to an average 2%.
If this week's headlines have left you wondering what the FOMC does — or what the Federal Reserve even is, for that matter — here's our primer on the Federal Reserve, the FOMC and what this week's rate-setting panel session means for your future finances.
What is the Federal Reserve — and why does it meet?
The Federal Reserve is the central bank of the United States and the anchor of the country's financial system and economic health. It’s governed by a federal Board of Governors appointed by the president and confirmed by the U.S. Senate that's in charge of fulfilling the responsibilities laid out in the Federal Reserve Act of 1913, most important to provide the nation with a safe, stable monetary and financial system.
The Federal Reserve Act has been amended a handful of times as the country's grown and faced economic challenges. Key among them is a 1933 amendment that created the Federal Open Market Committee — or the FOMC — within the Federal Reserve, as well as a 1977 amendment establishing what's referred to as the Fed's dual mandate that holds to this day: "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."
The Federal Open Market Committee, which is made up of the Board of Governors and regional Federal Reserve bank presidents, meets throughout the year to review how the economy is going, analyze risks to employment and inflation and authorize monetary policy, including how the country’s money supply is managed.
At these FOMC meetings, the committee also sets the federal funds target rate cited in its dual mandate. Called the Fed rate, this rate is the benchmark that influences what U.S. banks charge to borrow money and lend money to one another — and the interest rates you’re offered on deposit accounts, loans, mortgages and other financial products.
The Federal Open Market Committee meets next on Tuesday, June 11 and Wednesday, June 12, 2024.
🗓️ 2024 FOMC meeting schedule
The 2024 meeting schedule for the FOMC began on Jan. 30, with the next session scheduled for April 30 and May 1, 2024:
January 30–January 31, 2024
Federal Open Market Committee minutes released February 21, 2024
March 19–March 20, 2024
Post-meeting statement released March 20, 2024
Federal Open Market Committee minutes released April 10, 2024
April 30–May 1, 2024
Post-meeting statement released May 1, 2024
June 11–June 12, 2024
July 30–July 31, 2024
September 17–September 18, 2024
November 6–November 7, 2024
December 17–December 18, 2024
The Federal Open Market Committee meets eight times a year for two days — typically Tuesdays and Wednesdays — with additional meetings added to the schedule as the economy or financial conditions require. Outcomes of these meetings, including changes to the federal funds target rate, are announced to the public at the conclusion of the FOMC meeting, with meeting minutes released about three weeks later.
What is the Federal Open Market Committee?
The FOMC is the committee within the Federal Reserve that makes decisions around monetary policy and the open market — or the buying and selling of treasury bills and securities that regulate the country's money supply.
The Federal Open Market Committee is made up of the seven members of the Federal Reserve Board of Governors and five presidents of the 12 Federal Reserve district banks:
Federal Reserve Bank of Atlanta
Federal Reserve Bank of Boston
Federal Reserve Bank of Chicago
Federal Reserve Bank of Cleveland
Federal Reserve Bank of Dallas
Federal Reserve Bank of Kansas City
Federal Reserve Bank of Minneapolis
Federal Reserve Bank of New York
Federal Reserve Bank of Philadelphia
Federal Reserve Bank of Richmond
Federal Reserve Bank of San Francisco
Federal Reserve Bank of St. Louis
These presidents are like bank CEOs responsible for setting, supervising and maintaining the monetary policy of their appointed regions — called districts. Created by the Federal Reserve Act of 1913, districts within the Federal Reserve System work together to manage the country’s money supply and how commercial banks are funded.
Who attends the FOMC meetings?
The seven members of the Federal Reserve’s Board of Governors and all 12 regional Federal Reserve bank presidents are welcome to attend the meetings and participate in discussions, but only Federal Open Market Committee members can vote on monetary policy.
Voting FOMC members always include the president of the Federal Reserve Bank of New York and one each from the following four bank groups, based on a rotating schedule:
Boston, Philadelphia and Richmond, Va.
Cleveland and Chicago
Atlanta, St. Louis and Dallas
Minneapolis, Kansas City, Mo. and San Francisco
2024 members of the FOMC
Jerome H. Powell, Board of Governors, Chair
John C. Williams, New York, Vice Chair
Michael S. Barr, Board of Governors
Michelle W. Bowman, Board of Governors
Lisa D. Cook, Board of Governors
Philip N. Jefferson, Board of Governors
Adriana D. Kugler, Board of Governors
Christopher J. Waller, Board of Governors
Thomas I. Barkin, Richmond
Raphael W. Bostic, Atlanta
Mary C. Daly, San Francisco
Loretta J. Mester, Cleveland
May 1, 2024 FOMC meeting recap: Fed holds benchmark rate unchanged for sixth time since July 2023
At the conclusion of its third rate-setting policy meeting of 2024 on May 1, 2024, the Federal Reserve left the federal funds target interest rate at a 23-year high of 5.25% to 5.50%, marking the sixth consecutive time the Fed's held the benchmark rate unchanged since July 2023.
In its post-meeting statement, the Federal Reserve maintained "there has been a lack of further progress toward the 2 percent inflation objective." The Federal Reserve is focused on a 2% inflation goal that's ideal for keeping employment high and prices low. Despite speculation in March of three rate cuts by the end of the year, the Fed cautioned in its May statement that its rate-setting committee "does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent."
What to expect at the next FOMC meeting: June 11–June 12, 2024
It's too early to predict what the Fed will decide at its next policy meeting on June 11 and June 12, 2024. According to the CME FedWatch Tool, which measures market expectations for Fed fund rate changes, there's a 91.6% chance that the Fed will keep rates where they are at its next meeting.
Inflation appears to be on a downward trend, falling from a peak of 9.1% in June 2022 to rates that have ranged from 3% and 4% since May 2023. The May 3 jobs report fell short of employment expectations, showing 175,000 positions added in April — significantly lower than the 315,000 positions added in March — signaling a slowing job market that could relieve inflation worries and set off long-awaited cuts to the Fed rate.
Consumer Price Index released on May 15 revealed consumer prices rose by 3.4% year over year, down from 3.5% in March — a modest decrease, but a step in the right direction for this widely used indicator for inflation. Producer Price Index data released on May 14 showed a 0.5% increase in wholesale prices — or the prices paid to producers of goods and services — in the 12 months through April, its highest rate in a year. Yet while these newest inflation readings suggests progress, offering hope for a future cut to the Fed rate, it may not be enough for the Fed to lower rates in June.
Responding to inflation concerns, Federal Reserve Chair Jerome Powell said on May 15 that while he expects inflation to come down, "I think it’s more likely that we’ll be at a place where we hold the policy rate where it is.”
The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on June 12, at 2 p.m. ET.
How the Fed rate affects your finances
The federal funds rate — or Fed rate — is the benchmark rate that sets the outlook on the state of the country’s economy, and it affects the interest rates you get on deposit accounts, loans, mortgages and other financial products.
Generally, the Fed raises the federal funds rate when the economy is strong in an attempt to slow borrowing and tame inflation:
A higher Fed rate means increased annual percentage yields (APYs) on deposit accounts like certificates of deposit, high-yield savings accounts and money market accounts, helping you to earn more interest on your savings.
But it also means you’ll pay higher interest to borrow money through financial products like personal loans and credit cards. Mortgage and home loan rates don't follow the Fed rate as closely, yet when the Fed increases the benchmark rate, mortgage rates also tend to rise.
The Fed decreases the federal funds rate when the economy is sluggish, making it cheaper for you to borrow money:
A lower Fed rate means you’ll pay less interest on new personal loans, and monthly repayments on variable loans like adjustable rate mortgages and credit cards can become more affordable.
But it also means lower APYs on deposit accounts like certificates of deposit, high-yield savings accounts and money market accounts, decreasing the amount of interest you can earn on your savings balances.
Dig deeper: High-yield savings account vs. CD: What to know when rates are high
Frequently asked questions: the Federal Reserve, the FOMC and your money
What does the Federal Reserve do?
The Federal Reserve is the central bank of the U.S. that sets monetary policy and regulates the financial system to support a healthy economy for Americans and businesses. Created by Congress in December 1913, It has a mandate to increase employment and stabilize prices in order to keep inflation in check.
Among its main responsibilities are determining benchmark interest rates that affect the way consumers and businesses earn and borrow money, moderating the money available for banks to borrow and lend among themselves and regulating the open market that allows buyers and sellers to trade goods and services.
Its decisions influence how much money and credit is available to Americans and businesses, which affects how we buy homes and borrow money, grow our savings and retirement funds and take on new employment within a healthy job market.
What is the current federal funds rate?
The current federal funds target interest rate is 5.25% to 5.50%. The Federal Reserve’s Federal Open Market Committee meets eight times a year to set this benchmark, announcing any changes to the public at the conclusion of its meeting.
At its last rate-setting policy meeting, on March 20, 2024, the Fed left the Fed rate unchanged, marking the fifth consecutive time it’s held rates steady since July 2023.
What is the inflation rate?
The annual inflation rate is a measurement that reflects how quickly the prices of goods and services have increased over a year, expressed as a percentage. It’s important because inflation affects many aspects of the economy, from decreasing the purchasing power of the dollars in your wallet, to increasing the interest rates you pay to borrow money, to increasing the prices you pay on food, gas, housing, electricity and other basic needs.
The Federal Reserve is focused on keeping the inflation rate to an average 2% — a rate it’s determined as ideal for keeping employment high and prices low. A 2% inflation rate means that the goods and services you paid $1 for a year ago would now cost you 2% more — or $1.02.
You can see more about how inflation works by using the U.S. Bureau of Labor Statistics CPI Inflation Calculator, which bases its calculations on the Consumer Price Index, a widely used indicator for inflation.
How long are Federal Reserve terms?
Members of the Federal Reserve Board of Governors are appointed by the U.S. president and confirmed by the Senate for terms of 14 years. The Board of Governors chair and vice chair serve shorter terms of four years.
Tradition holds that members of the Federal Reserve’s Federal Open Market Committee elect the Board of Governors chair as FOMC chair and the president of the Federal Reserve Bank of New York as FOMC vice chair.
Sources
Federal Reserve Act, Federal Reserve. Accessed April 29, 2024.
Federal Open Market Committee, Federal Reserve. Accessed April 29, 2024.
The Dual Mandate and the Balance of Risks, Federal Reserve. Accessed April 29, 2024.
The History and Future of the Federal Reserve’s 2 Percent Target Rate of Inflation, Council on Foreign Relations. Accessed April 29, 2024.
CME FedWatch Tool, CME Group. Accessed May 16, 2024.
About the writer
Kelly Suzan Waggoner is personal finance editor at AOL. Before joining AOL, Kelly was managing editor at Bankrate and editor-in-chief at Finder, where she led a team focused on helping people to make unfamiliar financial decisions around banking, lending, credit cards, investments and more. In addition to Bankrate and Finder, Kelly’s expertise has been featured in Nasdaq, Lifehacker and other publications. Today, she's dedicated to empowering those planning for, newly entering or fully enjoying retirement to get the most out of their finances — whether that’s saving money, managing debt, maximizing rewards or growing their wealth.