ADP Data Cut Impacts Federal Reserve’s Labor Market Assessments

The Federal Reserve has lost access to crucial employment data from ADP, impacting their real-time labor market assessments since late October 2023. This data cut, which impacts around 20% of U.S. private employment, creates economic uncertainty, particularly regarding labor market trends and policy decisions. The Fed remains silent on how to address this data gap, exacerbating already heightened uncertainty in the financial markets.