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HomeCryptocurrency NewsAI tool created by JPMorgan analyzes Fed speeches to signal trades

AI tool created by JPMorgan analyzes Fed speeches to signal trades


According to reports, the world’s largest investment bank JPMorgan has created an artificial intelligence (AI) technology to analyze Federal Reserve speeches and remarks to find potential trade signals.

According to a report by Bloomberg on April 27, the Wall Street investment bank is analyzing central bankers’ remarks using a linguistic model based on ChatGPT.

Related: Will ChatGPT be banned?

The bank has coined the term “Hawk-Dove Score” to describe how these Fed policy signals will be assessed on a scale from easy to restrictive.

In terms of monetary policy, “hawkish” refers to increasing interest rates in order to keep inflation in check. The “Dovish” alternative, which supports a monetary policy of expansion and lower rates, is the opposite.

Analysts will be able to identify policy changes using the AI technique, which might offer the bank a heads-up on trading indications. According to reports, JPMorgan economist Joseph Lupton remarked that “preliminary applications are encouraging.”


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