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Schmidt: The overall balance of the labor market, a slight interest rate cut cannot solve structural issues.
[Schmidt: The labor market is generally balanced, and a modest rate cut cannot solve structural issues] Fed's Schmidt stated that the labor market is overall in a balanced state, and any pressure is more likely to stem from structural changes, while a modest rate cut cannot address these issues. If the market questions the Fed's commitment to the 2% inflation target, a rate cut may instead cause harm. (Jin10)