The last Federal Reserve meeting of 2023 ends Wednesday when it's expected to leave its key interest rate unchanged for the third straight month.

The pause follows aggressive rate hikes dating back to March 2022, a period in which the central bank raised rates 11 times to a 22-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.

Despite the increased cost, the economy has stayed resilient and could dodge a long-feared recession.

But attention is still focused on the Fed -- as it tries to temper economic growth without tipping the U.S. into a recession -- in the new year.

Looking ahead, this is when the Federal Reserve plans to meet in 2024.

Learn more: Best current CD rates

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 Jan. 30 through 31.

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.

Looking ahead:Fed expected to stand pat on interest rates but forecast just two cuts in 2024

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.

Inflation also could be caused by a shortage of supply. If there are not enough goods to meet the demand for a good or service, this could lead to an increase in a manufacturer's or retailer's wholesale costs, which, in turn, would be passed along to consumers through higher retail prices. 

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