[Federal Reserve's Mester: Reluctant to Support Further Rate Cuts] Jin10 News, January 31 – Federal Reserve's Mester stated on Friday that, given the inflation rate has consistently remained above the Fed's 2% target level, she is reluctant to support further rate cuts. Mester expressed her agreement with the Fed's decision to keep rates unchanged this week and believes that at the current rate level of 3.5% to 3.75%, the Fed's target rate is no longer high enough to significantly restrain the economy. Persistent price increases should deter the Fed from lowering rates to support the economy. Mester stated: 'Given that the inflation rate is above the target level and the risks to the economic outlook are roughly balanced, I believe it is not appropriate at this time to lower rates into an accommodative range.' Mester also pointed out that attempting to ease labor market pressures by lowering the short-term rates controlled by the Fed could backfire. She noted that such a move could trigger concerns about future inflation and push up long-term rates, which are critical in determining mortgage costs and corporate borrowing costs.