The Federal Reserve (FED) deciding to maintain interest rates despite weaker economic data has led to speculation about a possible rate cut. Fitch Ratings analyst Olu Sonola has shared insights into this situation.

FED's Reaction to Employment Numbers

The FED's choice to keep interest rates unchanged follows disappointing employment data for April. Sonola cautions against making assumptions based on just one month's data. He believes that the FED will require more evidence over several months to confirm trends in the labor market and inflation.