Critics fear inflation effects of Yellen's '70s era plan

Washington

JANET Yellen is pursuing a monetary policy with echoes from an era of bell-bottom jeans and New York Knicks' basketball championships. And that's got some economists worried.

In an unorthodox move, the Fed chair has signalled her intention to keep interest rates low enough to temporarily push unemployment modestly below its long-run natural rate. She described in a speech last month how a tight job market could entice discouraged workers back into the labour force, expand full-time employment, boost wages and possibly enhance efficiency.

"It's OK to run what I would refer to as a high-pressure economy right now," John Williams, who took over from Ms Yellen as …