"We are fully committed to the 2% (inflation) objective," says Janet Yellen, responding to a question about Kocherlakota's dovish dissent. She reminds monetary policy works with a lag and an inflation rate below 2% at a given time does not preclude the FOMC from believing it's on its way to meeting the target.
Asked about the "upward drift" in Fed Funds rate expectations - 11 of 16 members see Fed Funds 1% or above at the end of 2015 vs. just 7 who thought so last December. Don't read too much into those "dot plots," says Yellen (see page 3 of projections). "I can't speak for why people write down what they do." Focus instead, she says, on the FOMC statement, and that indicates a "shallower glide path" for rates (though markets aren't buying that a bit for now).
Earlier coverage of Yellen and the FOMC