Yellen often gets the short end of the stick when it comes to monetary policy. Being that she is the leader, anything that isn’t perfect gets pinned on her. The real perpetrator of Central Banking shenanigans is Ben Bernanke. He has been gone for a while, but Yellen has mostly been trying to fix things that he broke.
All-in-all, I feel for her, and think that, while I would have done things a little differently (I would have been much more hawkish), I think that she represents a real moderating position which balances a number of issues. She is moving towards pulling us out of ZIRP, but very, very slowly. I do, however, appreciate her resolve to keep moving forward, and hope that she really does start to unwind the balance sheet. It will hurt in the short term, but in the long term it will be great for the economy.
Unfortunately, her plan only gets us to a 3% rate. Certainly better than now, but not great. We really need at least 5%. The goal is to have a moderate deflation so that savings has real meaning again. Stashing money in the mattress should at least keep its value, and putting money in a bank should beat all metrics of inflation.
Anyway, Yellen gets criticized a lot, mostly just because she is the fed chair, and that makes her the face of all the bad fed policies. She hasn’t been as hawkish as needed, but she’s in a tough position, because she would probably be lynched if she did the right thing, and the person who replaced her would do the wrong thing. So, because she has stayed the course, my hat is off to her. Yellen, I know many complain, but I appreciate your work!