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Fed's Evans sees U.S. economy growing 3-3.5 percent in 2010


    NEW YORK (Reuters) - Charles Evans, president of the Chicago Federal Reserve, said on Monday he expects the U.S. economy to grow 3 to 3.5 percent in 2010, but that low inflation will give the central bank room to keep monetary policy accommodative for an extended period.

    Next year "will definitely be a better year" than 2009, Evans told CNBC in an interview.

    However, Evans said he expects the jobless rate will edge up "a few tenths" in 2010.

    Evans, a voting member of the policy-setting Federal Open Market Committee this year, said the Fed's extended period means about three to four meetings.

    "I've said before, that to me that seems like about three to four meetings," Evans said.

    He said inflation expectations seem well-anchored and that substantial resource slack is "diminishing the trajectory of inflation".

    (Reporting by Kristina Cooke; Editing by Dan Grebler)