The Republicans of the Ayd Rand/Libertarian wing think the Fed should be abolished (read:  The Creature from Jekyll Island) and kept asking questions they knew would backfire on the Fed, primarily along the lines of WHEN various steps would be taken, which she deflected handily.

The Democrats of the Left/Elizabeth Warren wing think the Fed should adhere more closely to its dual mandate of keeping both inflation and unemployment low, suggesting the Fed may have helped the short-term unemployed but did nothing for the long-term unemployed.  Yellen implied politely that monetary policy is better suited to deal with cyclical problems of normal unemployment , and that fiscal policy is better suited to deal with the structural problems of the long-term unemployed.

Amid the partisan preening, the purpose of the hearing was for Congress to hear the Fed describe the state of the economy.  Somehow, that never seems as important?  Anyway, the Fed is confident that the economy suffered a setback during the first quarter due to the unusually severe weather but is rebounding nicely in the second quarter.  She does NOT believe the stock market is over-valued or too high.  She emphasized the Fed has “both the tools and the willingness” to start shrinking its enormous holdings of government bonds.  I’ve no doubt she has the tools, but Fed Heads receive unrelenting criticism when they are used.  Somehow, I don’t think she cares, which is a good thing .

It was amusing to watch a tiny older lady “standing” before a phalanx of Alpha-males and handling them like college freshmen.  It was amazing that she can recall so many numbers, which I envied.  But, it was re-assuring that U.S. economic policy is mostly in her hands and not in the hands of elected partisans.