University of Oulu

Asif M. Ruman, A Comparative Textual Study of FOMC Transcripts Through Inflation Peaks, Journal of International Financial Markets, Institutions and Money, Volume 87, 2023, 101822, ISSN 1042-4431,

A comparative textual study of FOMC transcripts through inflation peaks

Saved in:
Author: Ruman, Asif M.1
Organizations: 1Department of Economics, Finance and Accounting, OBS, University of Oulu, Finland
Format: article
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 4.4 MB)
Persistent link:
Language: English
Published: Elsevier, 2023
Publish Date: 2023-11-07


This paper examines how natural language processing algorithms, utilizing textual analysis, can aid in comprehending the decision-making process of the Federal Open Market Committee (FOMC) and the factors influencing its monetary policy decisions in periods of high inflation, specifically, Feb 1979–Dec 1986 and Feb 2018–Feb 2023. The analysis uncovers common themes such as the economy and growth, along with remarkable differences in the language used. Volcker’s focus was on combating high inflation through interest rates, economic growth, and money supply, whereas Powell’s focus centered on discussing inflation more than relevant policy responses such as interest rates or asset purchases. These findings suggest that unlike Powell, Volcker took high inflation as a given and concentrated on policy actions to fight inflation, which he successfully managed.

see all

Series: Journal of international financial markets, institutions & money
ISSN: 1042-4431
ISSN-E: 1873-0612
ISSN-L: 1042-4431
Volume: 87
Article number: 101822
DOI: 10.1016/j.intfin.2023.101822
Type of Publication: A1 Journal article – refereed
Field of Science: 512 Business and management
Copyright information: © 2023 The Author. Published by Elsevier B.V. This is an open access article under the CC BY license (