Prattle’s analysis of the FOMC meeting minutes released on January 4, 2017 was featured in a MarketWatch article released the same day.
The minutes of the Federal Reserve’s December meeting were the most hawkish in two years, according to an analysis from Prattle.
Using an algorithm, the firm analyzes the words and phrases in the minutes and gives a “residual” score indicating how it differs from the average tone of communication. The scores are normalized around zero and range between -2 and 2, with negative numbers indicating dovishness and positive numbers indicating hawkishness.
The minutes of the December meeting carried a fairly hawkish score of 0.54. That’s more hawkish than the 0.27 score of the statement released after the meeting ended on Dec. 14. The scale is positive 2 to negative 2.
“It definitely signals that the committee is increasingly concerned with upside risks that could cause the economy to overheat and necessitate a faster pace of rate hikes,” said Evan Schnidman, CEO of Prattle.
Click here to read the full article.
The Signal Team