[Federal Reserve's Logan: 'Cautiously Optimistic' About Current Interest Rate Effects, Still Vigilant About High Inflation Risks] Odaily Planet Daily News – Federal Reserve's Logan stated on Tuesday that she holds a 'cautiously optimistic' attitude toward whether the Fed's current policy rate level can bring inflation back to the 2% target while maintaining a stable job market. Economic data in the coming months will test whether this judgment holds true. Logan said: 'If this is the case, it would indicate that our current policy stance is appropriate, and we can achieve the dual mandate goals without further rate cuts.' However, she added that if inflation declines while the labor market cools significantly, 'further rate cuts might become appropriate. But for now, I am more concerned about inflation remaining stubbornly high.' She noted that after three rate cuts last year, the downside risks facing the labor market 'seem to have significantly eased,' but at the same time, this has brought additional risks on the inflation front. She pointed out that with short-term borrowing costs now in a policy range widely estimated to be 'neutral,' the current interest rate level has limited restraining effects on the economy, which has rebounded strongly, and on inflation, which has remained above the Fed's target for nearly five years. Logan expects inflation to make progress this year, with some preliminary signs of improvement already evident.