You’re sitting at a coffee shop, and the person at the next table is complaining about their mortgage. They’re blaming "the Feds" for raising rates again. Or maybe they’re celebrating a cut. But if you ask them exactly when the next change is happening, or how often these shifts actually occur, you’ll probably get a blank stare.
There's a common myth that the Federal Reserve operates like a clock. People think they wake up on the first of the month and flip a switch. It doesn't work that way. Honestly, the frequency of rate changes is one of the most misunderstood parts of American economics.
The Eight-Meeting Rhythm
The short answer to how often do feds change interest rates is that they have eight scheduled opportunities every year. These happen during the Federal Open Market Committee (FOMC) meetings.
Think of these meetings like a doctor’s check-up for the economy. The committee—which includes the Board of Governors and several Reserve Bank presidents—sits down roughly every six weeks. They look at the "vitals": Is inflation too high? Are people losing jobs? Is the GDP growing or shrinking?
For 2026, the schedule is already locked in:
- January 27-28
- March 17-18
- April 28-29
- June 16-17
- July 28-29
- September 15-16
- October 27-28
- December 8-9
Just because they meet doesn't mean they move. In a "boring" economic year, they might leave rates exactly where they are at all eight meetings. In a volatile year, like we saw in 2022 and 2023, they might hike rates at every single one of them.
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Why the Frequency Changes
The Fed has what’s called a "dual mandate." They want two things: stable prices (low inflation) and maximum employment.
When inflation starts acting like a runaway train, they "pump the brakes" by raising interest rates. This makes it more expensive for you to buy a car or for a business to expand. This happens frequently when the economy is "too hot." Conversely, if the economy looks like it’s heading for a ditch, they "hit the gas" by lowering rates.
Take 2025 as a real-world example. The Fed was in a "cutting cycle." They trimmed rates in September, October, and December. That’s three changes in a four-month span. Compare that to the mid-2010s, where they went years without a single move.
The "Emergency" Exception
Can they change rates outside of those eight meetings? Yes. But it’s rare.
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It’s basically the "Break Glass in Case of Emergency" option. The last time we saw this was in March 2020. As the pandemic shut down the world, the Fed didn’t wait for their scheduled meeting. They held two emergency sessions and slashed rates to near zero in a matter of days. If the world isn't ending, they usually stick to the calendar.
Decoding the 2026 Outlook
Right now, we are in a weird transition period. Jerome Powell’s term as Fed Chair is wrapping up, and there’s a lot of talk about how a new leader might change the "cadence" of these moves.
Most experts, including those at Goldman Sachs, aren't expecting a wild 2026. After the flurry of cuts at the end of 2025, the working theory is that they’ll take a breather. They call this "data-dependent." Basically, they’re waiting to see if the 2025 cuts actually worked or if they accidentally let inflation creep back in.
Historically, the Fed prefers to be predictable. They hate "surprising" the market because that leads to stock market crashes and panic. That’s why you’ll see Powell or other members giving speeches a week before a meeting—they’re basically whispering to the world what they plan to do so no one freaks out on meeting day.
How This Hits Your Wallet
You might wonder why you should care about a bunch of economists in Washington meeting eight times a year.
It’s because your bank cares. The "Federal Funds Rate" is the interest rate banks charge each other to lend money overnight. When that goes up, the bank passes the cost to you.
- Credit Cards: Usually the first to move. If the Fed raises rates by 0.25%, your APR probably goes up by the same amount within a billing cycle or two.
- Mortgages: These are trickier. They track the 10-year Treasury yield more than the Fed rate, but they generally move in the same direction.
- Savings Accounts: This is the one win. When the Fed hikes rates, your High-Yield Savings Account (HYSA) finally starts paying you something decent.
The Myth of the "Fixed" Schedule
One thing you've gotta realize: the Fed doesn't owe us a change.
There’s no law saying they have to move the needle. In fact, some of the most "successful" periods in Fed history were when they did absolutely nothing. Stability allows businesses to plan for the next five years without worrying that their loan interest is going to double.
The current target range as of early 2026 is sitting around 3.50% to 3.75%. Whether they change that once this year or four times depends entirely on how many people are getting hired and whether your groceries keep getting more expensive.
Actionable Steps for the Rate-Watchy
If you’re trying to time a big purchase like a house or a car, don't just watch the headlines.
Check the "FedWatch" Tool. The CME Group has a tool that shows you exactly what professional traders think the Fed will do at the next meeting. If the tool says there’s a 90% chance of a rate cut in March, it’s a pretty safe bet.
Review your variable debt. If you have a HELOC or a variable-rate credit card, look at the "index" it’s tied to. Most are tied to the Prime Rate, which moves in lockstep with the Fed. If the FOMC is meeting on a Wednesday, expect your interest cost to shift by Friday if they announce a change.
Don't ignore the "Dots." Four times a year (March, June, September, and December), the Fed releases a "Dot Plot." It’s a literal chart of dots where each member "votes" on where they think rates will be in a year. It’s the closest thing we have to a crystal ball.
Keep an eye on that January 27-28 meeting. It sets the tone for the rest of the year. If they hold steady there, they’re likely waiting for the spring data to make their next move.