MY opinion, if I were Yellen
We all know Yellen has a problem.
Basically, QE3 and the knock-offs instituted around the globe do not address core economic problems that could increase consumption. This is because the money has been funneled into a non-productive area of the economy. Bernanke and the FED basically did what they did because Congress did not function.
Now Yellen needs to say, “We have done everything we can do with our zero interest rate policy, employment has increased and it is now time to bring some balance to FED policy. It is time for Congress and the Administration to move beyond their confrontational approach and work to enhance the working people of this country. As such, based on the data we have, we will be increasing rates between now and the next meeting in December.”
As to Washington and what we need to make this country work, David Brooks has some thoughts that make sense to me.