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.

More In Business

How DC is bringing the box office success of its films to its comics

Movie studios are comfortable digging through comic bins for hot new intellectual property, but they are not comfortable returning the favor and sharing th

The Fed, Big Tech, and What’s Next: Can Markets Find Their Footing?

Chris Versace, CIO at Tematica Research and portfolio manager for TheStreet Pro, joins from the NYSE to break down the Fed’s latest move and Big Tech’s earnings

Politics and the Price of Groceries: Snap Benefits Caught in the Shutdown Crosshairs

Sabrina Siddiqui, National Politics Reporter at The Wall Street Journal, joins to break down the SNAP funding delays and the human cost of the ongoing shutdown.

Conservative Supreme Court justices appear skeptical of tariffs

Arguments at the Supreme Court have concluded for the day as the justices consider President Donald Trump's sweeping unilateral tariffs in a trillion-dollar test of executive power.

Box Office Glow-Up: How Anime Is Outshining Hollywood Hits

Paul Dergarabedian, Senior Media Analyst at Comscore, joins to break down the anime boom at the box office and what it means for the future of film.

The Future of Crime Solving: Longeye’s AI Workspace for Investigators

AI is reshaping investigations. Longeye CEO Guillaume Delepine shares how their AI workspace empowers law enforcement to uncover insights faster and smarter.

From Rates to Rent: Inside the Real Estate Rollercoaster

Frances Katzen, Managing Director at Douglas Elliman, joins to break down shifting housing trends, buyer behavior, and what’s next for real estate.

Getty’s $3.7 billion attempt to buy Shutterstock faces investigation

Britain's antitrust watchdog is intensifying its investigation into Getty Images' plan to buy Shutterstock.

Rate Cut Reaction: Inside the Fed’s 25-Point Move and What Comes Next

Stephen Kates, Financial Analyst at Bankrate, joins to discuss the Fed’s 25-basis-point rate cut, inflation risks, and what it all means for consumers and marke

Inside Big Tech’s Earnings: How Alphabet, Amazon & Microsoft Stack Up

Big tech earnings take center stage as investors digest results from Alphabet, Meta, Microsoft, Amazon, and Apple, with insights from Gil Luria of D.A. Davidson

Load More