Moreover, inflation expectations are well anchored at those low levels. Increasing our inflation targets could result in more-variable inflation and worse economic outcomes over time. Inflation expectations would necessarily have to become unanchored as inflation moved up. I doubt households and businesses would immediately raise their expectations to the new targets and that expectations would then be well anchored at the new higher levels.
Instead, I fear there could be a long learning process, just as when inflation trended down over recent decades. Moreover, a higher inflation target might also mean that inflation would be higher than can be ignored, and businesses and households may take inflation more into account when writing contracts and making investments, increasing the odds that otherwise transitory inflation would become more persistent.