Does the Fed’s tone move markets?

Eight times a year the US central bank, the FedThe Federal Reserve. It sets the short-term interest rate for the US economy. Its rate-setting committee is called the FOMC., publishes a short statementFOMC statement. A one-page press release at 2pm New York time explaining the rate decision and how the Fed sees the economy. Traders read every word.. An AI read all 174 of them and scored how hawkishHawkish = leaning toward higher interest rates, usually to fight inflation. Shown in orange. or dovishDovish = leaning toward lower interest rates, usually to support jobs and growth. Shown in blue. each one sounds. Then we checked whether markets agreed.

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