What the Trading Bots Got Wrong About the Fed Minutes
Despite an initial surge, the Dow closed down 167 points after the Federal Reserve released January minutes Wednesday afternoon. William De Lucy, Managing Director at Amplify Trading, was with us to break down why robots may have misunderstood the overall message delivered by the Fed.
He said the initial push higher was because algorithms were looking at the headlines, which were more dovish than the overall statement was meant to be. De Lucy said there are automatic word recognition programs that pick up words such as "gradual", which was connected to the pace of interest rate hikes. He said it seems like the algorithms got it wrong, and the A.I. was not intelligent enough.
Goldman Sachs came out with a report Thursday that revealed it expects 5 rate hikes. De Lucy said no one is expecting just three anymore. He added that one big deterrent for the Fed is that more rate hikes will cause equities to correct. Since President Trump has been putting such a focus on the strong stock market, Du Lucy expects we will see more inflation before we see rates go up.
A stark disagreement over regulating AI in Republicans’ tax cut and spending bill is the latest tension among conservatives about whether to let states continue to put guardrails on emerging technologies or minimize such interference.
Mark Hamrick of Bankrate discusses the jobs market, AI's growing impact on employment, and how markets are reacting to today’s surprising payroll data.
Amanda Chu of POLITICO reveals how lawmakers are betting millions on pharma stocks even as Trump threatens tariffs and demands steep drug price cuts. Watch!
Hayley Berg, Hopper’s lead economist, previews soaring summer 2025 travel: record international flights, cheaper fares for Europe & Asia, plus booking hacks.
NerdWallet Senior Economist Liz Renter shares what she's tracking in economic data, with a focus on U.S. household debt and rising credit card balances. Watch!
At some 940-pages, the legislation is a sprawling collection of tax breaks, spending cuts and other Republican priorities, including new money for national defense and deportations.
