Salient to Investors:

Mark Spindel at Potomac River Capital said Janet Yellen would welcome a little more inflation because of the costs of too-low inflation are high, but would not let inflation run away.

Stephen Oliner at the American Enterprise Institute said Yellen has very little tolerance for inflation above 2 percent.

Laurence Meyer at Macroeconomic Advisers said Yellen was a force behind the FOMC’s decision to move to an even more accommodative policy last December and is a devout believer in defending the medium-term inflation target from below and from above. Meyer said the Fed’s solid record on inflation can’t be easily dismissed so you don’t want to be the chairman who loses price stability.

Mark Calabria at the Cato Institute said it is an open question whether Yellen can be a ‘Paul Volcker’ if she needs to be.

J. Alfred Broaddus Jr. said Yellen would pre-empt an inflation outbreak.

Fed officials’ median estimate for the benchmark lending rate is 2 percent at the end of 2016, a year when policy makers expect growth up to 3.3 percent, inflation of 1.7 percent to 2 percent, and unemployment at 5.4 percent to 5.9 percent.

Bret Barker at TCW Group is defensive on long-term rates as he sees the Fed as overly accommodative with the employment mandate above inflation, a long-term concern.

Michael Gapen at Barclays said Yellen is more practical and even-handed, and people’s views on Yellen being dovish stem from her views on the cyclical softness in labor markets.

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