Speaking Fed with Confidence: How LLMs Decode Monetary Policy Without Guesswork
TL;DR for operators Fedspeak classification is not the same thing as sentiment analysis with better stationery. A sentence about “strong employment” can be dovish in one macro regime and hawkish in another. The paper behind this article tackles that problem by giving an LLM a structured reasoning scaffold: extract economic entities, map their relations, reason through monetary-policy transmission paths, then classify the stance as hawkish, dovish, or neutral.1 ...