[Federal Reserve's Schmidt Advocates Maintaining Restrictive Interest Rates, Warns Rate Cuts Won't Solve Structural Labor Issues] Jin10 News, January 16 – Federal Reserve's Schmidt stated that interest rates should remain at levels that continue to exert pressure on the economy to further cool inflation. Given that inflationary pressures remain evident, I lean toward maintaining a moderately restrictive monetary policy. He noted: "Although the labor market has cooled, some degree of cooling may be necessary to prevent the inflation outlook from deteriorating." Schmidt reiterated on Thursday that further rate cuts may not stimulate hiring and asserted that the slowdown in growth is driven by structural factors. The Federal Reserve is best suited to provide assistance during cyclical recessions. Schmidt said: "I do not believe further rate cuts can effectively repair the cracks in the labor market—these pressures are most likely caused by structural changes in technology and immigration policy. I am concerned that rate cuts will have a more lasting impact on inflation, as our commitment to the 2% target is increasingly being questioned."