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. Plotting the index against a range of asset performances, the economists found that the AI tool can ... (full story)