Fed’s Evans Says 3% Inflation Wouldn’t Be Bad

(Reuters) – Chicago Federal Reserve Chairman Charles Evans on Tuesday reiterated his view that the US central bank should aggressively court higher inflation after years of under-executing its 2% target.

“Frankly, if we got 3% inflation it wouldn’t be that bad,” Evans said at a virtual meeting of the American Economic Association, as long as it doesn’t accelerate out of control.

However, with structurally low interest rates dragging on inflation, “it is very difficult to imagine uncontrollable inflation, even with the large debt that the budgetary authorities have contracted”.