Wall Street turns to AI as Fed Chair Kevin Warsh curbs guidance

According to CNBC, financial firms are building AI tools and other models to interpret Federal Reserve Chair Kevin Warsh after he moved to scale back the central bank’s forward guidance and communication. F/m Investments has released a chatbot called WarshGPT that parses nearly 1,800 documents and transcripts from Warsh, while UBS uses an interactive dashboard to assess the policy tone of his remarks. JPMorgan Asset Management said it may rely more heavily on Federal Open Market Committee speeches if the Fed drops key releases such as the dot plot. Markets are also pricing in policy uncertainty, with Fed funds futures traders assigning almost a 59% chance of a rate increase in September, according to CME’s FedWatch tool, while Kalshi traders see rates staying unchanged as the likeliest outcome.