The Federal Reserve faces another "supply cut"! Payroll service provider ADP stops providing private sector employment data to it

The Federal Reserve has lost access to private sector employment data provided by ADP Research, leading to an information blind spot ahead of its upcoming interest rate meeting. ADP ceased data provision on August 28, and the reasons remain unclear. Due to the government shutdown, the release of official economic data has significantly decreased, and the interruption of ADP data further weakens the Federal Reserve's real-time grasp of the labor market. The Federal Reserve faces a decision-making dilemma between a weakening labor market and persistent core inflation pressures. Powell has emphasized the importance of ADP data, calling it a complement to official data