JPMorgan Creates AI Model to Analyze 25 Years of Fed Speeches
- Economists use ChatGPT-based language to detect signals
- Firm plans to expand tool to cover more than 30 central banks
JPMorgan Chase & Co. headquarters in New York.
Photographer: Gabby Jones/BloombergThis article is for subscribers only.
A week before the Federal Reserve’s next meeting, JPMorgan Chase & Co. unveiled an artificial intelligence-powered model that aims to decipher the central bank’s messaging and uncover potential trading signals.
Based off of Fed statements and central-banker speeches going back 25 years, the firm’s economists including Joseph Lupton employed a ChatGPT-based language model to detect the tenor of policy signals, effectively rating them on a scale from easy to restrictive in what JPMorgan is calling the Hawk-Dove Score.