Fed's Evans says 3% inflation wouldn't be bad

FILE PHOTO: Chicago Federal Reserve Bank President Charles Evans speaks during the Global Interdependence Center Members Delegation Event in Mexico City, Mexico, February 27, 2020. REUTERS/Edgard Garrido/File Photo

(Reuters) - Chicago Federal Reserve President Charles Evans on Tuesday reiterated his view the U.S. central bank ought to aggressively woo higher inflation after years of under-running its 2% target.

“Frankly if we got 3% inflation that would not be so bad,” Evans told a virtual meeting of the American Economic Association, as long as it is not accelerating uncontrollably.

With structurally low interest rates pulling down on inflation, however, “it is very difficult to imagine out of control inflation, even with the large debt that fiscal authorities have been running up.”

Reporting by Ann Saphir; Editing by Chris Reese