Findings from Bar Ilan University Provides New Data on Investment (Information In Central Bank Sentiment: an Analysis of Fed and Ecb Communication): Investment

2026 JUL 08 (NewsRx) -- By a News Reporter-Staff News Editor at Middle East Daily -- New research on Investment is the subject of a report. According to news originating from Ramat-Gan, Israel, by NewsRx correspondents, research stated, “This paper constructs a sentiment measure for published central bank (CB) communications using natural language processing and FinBERT techniques (machine learning models adapted to analyze financial news). We analyze sentiment of various Fed and ECB communications, but focus on FOMC minutes and ECB press conferences for our main results.”

Our news journalists obtained a quote from the research from Bar Ilan University, “We find that Fed and ECB sentiment move together. Using local projection analysis, we estimate impulse response functions (IRF) to central bank sentiment. We find that CB sentiment leads policy interest rates and the Taylor rule several quarters into the future. Fed sentiment leads the Fed funds rate after controlling for Michigan sentiment.”

According to the news editors, the research concluded: “In turn, stock market returns and deflation expectations tend to lead Central Bank sentiment.”

This research has been peer-reviewed.

For more information on this research see: Information In Central Bank Sentiment: an Analysis of Fed and Ecb Communication. Journal of International Financial Markets Institutions & Money, 2026;110. Journal of International Financial Markets Institutions & Money can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands.

The news correspondents report that additional information may be obtained from Alon Raviv, Bar Ilan University, Ramat Gan, Israel. Additional authors for this research include Jens Hilscher and Kyle Nabors.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.intfin.2026.102335. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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