UPDATE 1-Fed's Evans, 'optimistic' on recovery, sees no need to adjust QE

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(Adds quotes from Evans)

March 3 (Reuters) - Chicago Federal Reserve Bank President Charles Evans on Wednesday said he is "optimistic" about the economic outlook and does not expect to need to further ease Fed policy as long as Congress passes further fiscal relief.

"At the moment I think the rebound that we're expecting is really quite a strong one," Evans told the CFA Society Chicago. If the economy were to need more of a boost, the Fed -- which is now buying $120 billion in bonds monthly -- could shift to buying longer-duration bonds, he said.

But, he added, "I think that the fiscal stimulus that is currently being proposed, and if enacted, would be very strong, and I think that would be to the point where I would not expect we would have to change the duration aspect of these purchases."

Unemployment, now at 6.3%, will likely fall to closer to 5% by the end of the year, he said. But that overall rate masks millions on the sidelines, which if taken into account would give the current unemployment rate a read of 9% or higher, he said.

Evans said he sees little chance of inflation rising too quickly, even with fast economic growth, saying it would be "extraordinary" if it reached 3%, and even if it did so, it would only be a problem if it looked like it was quickly heading to 4%.

The Fed has the tools to deal with too-high inflation as well as too-low inflation, he said, though fighting weak inflation is more difficult.

(Reporting by Ann Saphir Editing by Chizu Nomiyama)