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FOMC

Aug 07 2020

Textual Analysis Of Fed Statements—Always Artificial, Sometimes Intelligent

  • Aug 7, 2020

We geek it up a notch and use some of the popular text-processing techniques to quantify the hawkish/dovish sentiment of the latest Fed statement. Some human “coaching” is needed in every step of the process (hence the “artificial” part). But when these tools are used properly for carefully chosen tasks, they can be quite intelligent.