Yellen to rewrite Fed rule book on wages, inflation?

Yellen has indicated she is willing to pursue a policy of lower interest rates for longer and allow inflation to push beyond the Fed's 2% target in order to encourage wage growth and bring as many workers as possible back into the full-time labour market - EPA Photo.

WASHINGTON: Federal Reserve Chair Janet Yellen wants to see US wages climb at a much brisker clip to boost consumer spending and help workers recoup ground they lost in the last recession, but she'll have to fend off policymakers who fear that could cause inflation to surge.

As she seeks to maintain a consensus at the central bank, Yellen will have strong arguments in favour of nursing the recovery for longer and should be able to counter any calls for an early interest rate hike.