Yep, the Fed's new move is 'qualitative easing'

Well, exactly as I suggested this morning, the Federal Reserve is now going to use a wide variety of indicators to conduct monetary policy and is no longer targeting a 6.5 percent unemployment rate as the sole determinant guiding policy from here.

(Read more: Fed tapers, backs away from unemployment target)

Indeed, the Fed statement suggests, as I did, that the Fed could ease further in order to maximize employment and get its inflation closer to its 2-percent target.

So, while the Fed is winding down quantitative easing, it will hold short-term interest rates down longer than most expect. I think the markets are getting this wrong at the moment; they should view this positively — i.e., stocks should rally, interest rates should fall and precious metals should also reverse course, given the promise of low rates for some time to come.

(Read more: What's new in the latest Fed statement)

Using a qualitative assessment of economic conditions makes this new regime at the Fed, under Janet Yellen, much more likely to err on the side of caution and keep pushing the economy toward its fullest potential, unwilling to raise rates unless and until the economy can clearly handle a higher cost of money.

Some economists continue to suggest thus is a highly inflationary policy and many suggest these policies will cause a collapse in the dollar.

(Read more: What's the market doing now? Click here)

Well, five years and $4 trillion later, the naysayers remain wrong and the markets, today notwithstanding, have it right. The Fed has it right too and I cheer Janet Yellen's first move as the most qualified chair of the Federal Reserve to have succeeded Ben Bernanke.

— By Ron Insana

Ron Insana is a CNBC and MSNBC contributor and the author of four books on Wall Street. He also delivers a daily podcast, "Insana Insights," and a long-form weekly version, both available on iTunes and at Follow him on Twitter @rinsana.

(Read more: Ron Paul to Fed: Hands off interest rates!)