Federal Reserve Loses Access to Key Employment Data

According to BlockBeats, the Federal Reserve has recently lost access to employment data provided by a third party. Since 2018, payroll processing company ADP has supplied the Federal Reserve with a dataset containing anonymous employment and income information, covering 20% of the U.S. private sector workforce. This data, typically available to the Federal Reserve with about a week's delay, has been a timely and comprehensive measure of the employment market. Sources indicate that ADP ceased providing this data to the Federal Reserve after a speech by Federal Reserve Governor Christopher Waller in late August drew public attention to the central bank's long-term use of ADP's employment data. The specific reasons for this change remain unclear. In his speech, Waller referenced ADP's data in a footnote, expressing concerns about a slowdown in the labor market. The footnote highlighted preliminary estimates showing a continued deterioration in hiring conditions over the summer, with data extending beyond the latest government reports.