Right on, Janet Yellen!

Janet Yellen's testimony on Capitol Hill that rates will stay lower for longer is right where the Federal Reserve should be.

The Fed chair pointed to significant slack still in the labor markets, weak overseas economies, including China, and inflation that remains below the Fed's stated 2-percent target.

Read MoreYellen: No rate hike for next couple FOMC meetings

Janet Yellen
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Janet Yellen

Housing, at home, is sluggish, at best and overseas economies are weak enough to pose a risk to domestic economic growth.

While the U.S. economy is steady to stronger, the world economy is quite fragile and it will take several months to determine whether or not the world can withstand higher U.S. rates.

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From my perspective, this means that a rate hike could come no sooner than September. Some believe that a June rate hike is still on the table, but the way in which Yellen has suggested it will take a couple meetings simply to begin considering raising rates, means that we're, at least, six months away from a move.

I still think the Fed waits until 2016 to start raising rates, assuming the data support higher rates.

It has been a long slog for the Fed, holding rates at zero, but it has been necessary since the economy has been recovering, not fully, from the ill-effects of the worst recession in decades.

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Janet Yellen is protecting the economy, protecting workers and ensuring the U.S. recovery can withstand headwinds from across both ponds.

Monetary policy is driven by domestic concerns, unless global issues become a concern here at home.

Fed on hold, the markets will like this.

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However, we need to keep an eye on long-term interest rates.

If they rise, it could suggest that the bond market sees something different than the Fed sees.

In that case, the debate begins anew.

Commentary by Ron Insana, a CNBC and MSNBC contributor and the author of four books on Wall Street. He also editor of "Insana's Market Intellgence," available at Marketfy.com. He delivers a daily podcast, "Insana Insights," and a long-form weekly version, both available on iTunes and at roninsana.com. Follow him on Twitter @rinsana.