AI tool created by JPMorgan analyzes Fed speeches to signal trades

Investment banking giant JPMorgan has reportedly unveiled an artificial intelligence (AI) tool to evaluate Federal Reserve statements and speeches to spot possible trading signals.On April 27, Bloomberg reported the Wall Street investment bank is using a ChatGPT-based language design to digest remarks from United States central bankers.These Fed policy signals will be rated on a scale from easy to restrictive to derive what the bank has actually called a Hawk-Dove Score. The opposite is “Dovish,” which favors an expansionary financial policy and lower rates.The AI tool will offer analysts a way to detect policy shifts thatcould supply the bank with a heads-up on trading signals. “Preliminary applications are encouraging,” JPMorgan economic expert Joseph Lupton apparently said.The tool can be used to forecast modifications in central bank tightening.