ADP’s monthly report on Wednesday showed that private payrolls rose by just 89,000 in September,

well below a Dow Jones consensus estimate of 160,000 and down from an upwardly revised 180,000 in August

Though jobs reports have been traditionally viewed as a lagging indicator, Richardson noted

the relationship between the labor market and monetary policy has been overhauled in the course of the current cycle.

Inflation is “always going to be a risk” in the U.S. due to structural changes in the labor market

according to Nela Richardson, chief economist at payroll processing firm ADP.

Last year, with inflation spiraling out of control across major economies in the aftermath of the Covid-19 pandemic,

Fed funds rate target range from 0.25-0.5% in March 2022 to a 22-year high of 5.25-5.5% in July 2023.

Prior to that, interest rates had remained low for a decade as central banks around the world looked

to stimulate their respective economies in the wake of the global financial crisis.