Janet Yellen, vice-chair of the Federal Reserve, believes the Fed's forward guidance is "good news for workers", as it will help boost employment in the US.

Yellen yesterday said the increase in unemployment since the financial crisis was "largely cyclical and not structural", and can be alleviated by cultivating higher aggregate demand.

She said three tailwinds that usually help promote recovery from a recession – discretionary fiscal policy, recovery in the housing market and household income