Topic

Every word from the Federal Reserve moves markets, but their statements are often cryptic. In this talk, I’ll aim to break down my work for a class I took in college on using machine learning and natural language processing (NLP) to analyze Federal Open Market Committee (FOMC) statements and minutes to “predict” interest rate changes. By applying sentiment analysis, text processing, and neural network modeling, I tried to explore whether AI can help us potentially decode central bank language and anticipate monetary policy shifts. I will share some key findings and challenges.