FOMC Tone Analysis Reveals Inflation Projections Drive Member Disagreement
The article analyzes why members of the Federal Open Market Committee (FOMC) have different tones in their speeches. By using text analysis tools, the researchers found that FOMC members' tone is linked to their predictions for inflation. Those who predict higher inflation tend to use a more positive tone. The study also discovered that Federal Reserve Bank presidents and voting members have a more distinct tone, especially during discussions about the economy.