JPMorgan, the leading investment banking giant, has announced the development of an Artificial Intelligence (AI) tool to base their decisions of the Federal Reserve's speeches and statements. This tool, called Hawk-Dove Score, will rate the policy changes made by the Federal Reserve on a scale of easy to restrictive. This tool is intended to serve as an analyzer to detect potential signs of trading as the policy is shifted. The AI tool is able to detect changes over the past 25 years and have seen fluctuations in the predictive policy.

Furthermore, with the expected rise in the benchmark interest rate of the Federal Reserve to 5.25%, JPMorgan is able to predict the rate increase with a Hawk-Dove score of 10 points. A higher score of 10 points indicates there is a chance of a rate hike and a lower rate infers that there is a chance for rate reduction.

However, JPMorgan has imposed a restriction on its employees from using the chatbot, ChatGPT. The aim is to keep any disturbances from AI applications from affecting their trading decisions. Despite the restriction being imposed on employees, CEO Jamie Dimon reveals that the bank has over 300 AI use cases currently in production.

JPMorgan bigwigs are confident that their tank score system will be beneficial for their trading decisions and that initial applications have been encouraging in the current market. With Hawk-Dove Score, their trading signals can be more accurate and secure. The bank is well on its way to ensure their success when it comes to AI applications. Though employees are restricted from using AI, the company is ensuring that they will still be the cream of the crop.



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