Fed's Evans says rise in bond yields a 'good thing'

April 7 (Reuters) - Chicago Federal Reserve Bank President Charles Evans on Wednesday said the recent rise in Treasury yields is a "good thing" because it reflects optimism over the economy and the welcome expectation for slightly higher inflation.

"It is a sign that the economy is doing better," Evans said, adding that he believes that inflation of 2.5% should not be "out of bounds" and that he would welcome inflation of even 3% so as to boost average inflation, which has been running low, to the Fed's 2% goal. (Reporting by Ann Saphir)