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Fed Sees Hikes Boosting Unemployment in Time for 2020 Election

Inside A Recruit Military Veterans Job Fair As Jobless Claims Figures Are Released

Photographer: Luke Sharrett/Bloomberg

Federal Reserve policy makers’ new economic projections contain a message President Donald Trump probably isn’t going to like: Interest-rate increases will start to hit the U.S. economy in 2020, leading to rising unemployment during a presidential election year.

Projections for interest rates and unemployment published Wednesday showed the median participant on the U.S. central bank’s rate-setting Federal Open Market Committee expects it will be appropriate to raise the federal funds rate into a 3 percent to 3.25 percent range by the end of 2020, and leave it there through the end of 2021 -- perhaps marking the end of the current tightening cycle that began in December 2015.