The Fed shouldn't exist and print and manipulate in the first place but it does. The economy needs market rates. Given the amount of debt and lack of production/productivity, the rates need to shoot up into high double digits. The Fed will not do that, since even low single digits will complete the economic collapse that was not allowed to run its course by the Fed so many times. From Greenspan, to Bernanke, to the current incarnation, they want to prop upnthe fake economy - stock and bond and housing and some other prices.
This worked for a long time given that the productive economies of the world absorber the Fed's inflation. However a couple of weeks back China decoupled from the USD and when the dollar pops and crashes, China will not be picking it up this time.
The Fed might even understand this, though I don't think Yellen personally understands anything at all.
In any case, USA needs high rates, but they also will crush its fake economy and the Fed proved that it will give the government whatever government wants and government never wants to be responsible for what is really happening. The problem of the welfare and robbery State will not be solved by the State or the people even, they don't want the actual solution, it is so painful they are scared of it.
The problem will be solved by the market, that will impose real interest rates by stopping credit and by refusing to take in fake money in exchange for real goods.
Wall street would make more REAL money with real interest rates in a healthy economy, but Wall street lives within the reality of the political system that prefers expediency and promises of free cake, so it uses fake 0% interest to its advantage the best it can. The Main street votes in politicians who promise free cake, that in turn leads to a fake economy.
This will end in pain and suffering of course. The collapse of the dollar and the US bond is closer than ever now, no more props by China and nobody else is big enough to prop the US up. Europe is not a coherent structure that can do it either. It was really a genious move by the US to set up the EU in hopes to create a bigger, more coherent market for its inflation. But I don't think it will help much at the end.
The much needed restructuring means a serious depression. The depression like none before, now that USA lost so much of its productive capacity. Americans should pray it is not some nationalist democrat that guides them through it but someone aligned with anarcho capitalist principles instead.