Analyzing FOMC Minutes: Accuracy and Constraints of Language Models

arXiv:2304.10164v2 Announce Type: replace
Abstract: This research article analyzes the language used in the official statements released by the Federal Open Market Committee (FOMC) after its scheduled meetings to gain insights into the impact of FOMC official statements on financial markets and economic forecasting. The study reveals that the FOMC is careful to avoid expressing emotion in their sentences and follows a set of templates to cover economic situations. The analysis employs advanced language modeling techniques such as VADER and …

abstract accuracy article arxiv constraints cs.cl economic financial financial markets forecasting impact insights language language models markets meetings research study type