A Text Analysis of Federal Reserve meeting minutes
This provides an incremental tool for economists and policymakers to analyze monetary policy communication, though it is domain-specific to financial and economic contexts.
The researchers tackled the need for objective analysis of Federal Reserve communication by developing a novel text analysis technique that maps policymakers' comments into a semantic space to identify which committee member aligns most closely with the consensus over time, enabling actionable research.
Recent developments in monetary policy by the Federal Reserve has created a need for an objective method of communication analysis.Using methods developed for text analysis, we present a novel technique of analysis which creates a semantic space defined by various policymakers public comments and places the committee consensus in the appropriate location. Its then possible to determine which member of the committee is most closely aligned with the committee consensus over time and create a foundation for further actionable research.