A day before the US midterm election, President Obama will be meeting chair of the Federal Reserve Board, Janet Yellen to discuss the US economy.
It will be the first one on one session with the head of the Federal Reserve Board. The White House in a statement said that the focus of the meeting will be the long term outlook of the American Economy and the Global Economic Recovery.
The government stated that the economy has grown at 3.5% annualized rate in the three months which ended in September. The second quarter had seen a growth of 4.6%. It has been the best US GDP since the last six months of 2003.
Obama also had separate meetings with Yellen’s predecessor, Fed Chairman Ben Bernanke.
The White House in an e-mailed statement said, “This meeting is a continuation of that important dialog on the state of the economy, financial reform, and other economic issues.”
It is only two days since Yellen and her colleagues brought to close an asset-purchase program which added $1.66 trillion to the central bank’s balance sheet. The step was taken in view of the solid job gains and at the same time maintaining interest levels low for a very long time. Inflation has also stayed under 2%.
Yelen will be completing the two year bond purchase campaign which was started under her predecessor Bernanke just as the Feds reach their stated goal of full employment. Yelen will be setting course for the first rate increase since 2006. She will be facing a slowing global economy and als a declining inflation.
Yellen met Obama on October 6 as a part of a group of financial regulators who were analyzing the effects of regulations on the consumers and the Wall Street. In spite of reversals the shaky global recovery continues. The growth forecast for the world economy has been lowered to 3.3 % and it is 0.4% lower than what was projected in the April 2014 World Economic Outlook (WEO).