Carlson School of Management
The Federal Open Market Committee (FOMC) communicates monetary policy and economic outlook through various channels, such as speeches and testimonies. These researchers are examining these text data using natural language processing technologies with machine learning. They study the semantic similarities of the texts across the FOMC members over time and how the communication affects the volatility in the financial markets. They also study how the information is disseminated by examining how the information in communications is correlated with the confidential information in the FOMC meetings and with the financial news.