# FedNLP: An interpretable NLP System to Decode Federal Reserve Communications

arXiv: https://arxiv.org/abs/2106.06247 · HTML: https://mlsanity.com/paper/2106.06247/

## Key facts

- Cited by 4 papers in the map (data through 14 Oct 2026).
- Builds on 11 of its 28 references that are in the map.
- First posted on arXiv 11 Jun 2021.

## Builds on (most cited first, 11 of 11)

- [Attention Is All You Need](https://mlsanity.com/paper/1706.03762/) (2017)
- [BERT: Pre-training of Deep Bidirectional Transformers for Language Understanding](https://mlsanity.com/paper/1810.04805/) (2018)
- [Exploring the Limits of Transfer Learning with a Unified Text-to-Text Transformer](https://mlsanity.com/paper/1910.10683/) (2019)
- [XGBoost: A Scalable Tree Boosting System](https://mlsanity.com/paper/1603.02754/) (2016)
- ["Why Should I Trust You?": Explaining the Predictions of Any Classifier](https://mlsanity.com/paper/1602.04938/) (2016)
- [Analyzing the Structure of Attention in a Transformer Language Model](https://mlsanity.com/paper/1906.04284/) (2019)
- [The What-If Tool: Interactive Probing of Machine Learning Models](https://mlsanity.com/paper/1907.04135/) (2019)
- [FinBERT: A Pretrained Language Model for Financial Communications](https://mlsanity.com/paper/2006.08097/) (2020)
- [The Language Interpretability Tool: Extensible, Interactive Visualizations and Analysis for NLP Models](https://mlsanity.com/paper/2008.05122/) (2020)
- [Seq2Seq-Vis: A Visual Debugging Tool for Sequence-to-Sequence Models](https://mlsanity.com/paper/1804.09299/) (2018)
- [Manifold: A Model-Agnostic Framework for Interpretation and Diagnosis of Machine Learning Models](https://mlsanity.com/paper/1808.00196/) (2018)

## Built on by (most cited first, 4 of 4)

- [A Survey of Large Language Models in Finance (FinLLMs)](https://mlsanity.com/paper/2402.02315/) (2024)
- [StockEmotions: Discover Investor Emotions for Financial Sentiment Analysis and Multivariate Time Series](https://mlsanity.com/paper/2301.09279/) (2023)
- [From Feedback Loops to Policy Updates: Reinforcement Fine-Tuning for LLM-Based Alpha Factor Discovery](https://mlsanity.com/paper/2605.15412/) (2026)
- [Logistic Regression makes small LLMs strong and explainable "tens-of-shot" classifiers](https://mlsanity.com/paper/2408.03414/) (2024)

## Abstract (arXiv)

The Federal Reserve System (the Fed) plays a significant role in affecting monetary policy and financial conditions worldwide. Although it is important to analyse the Fed's communications to extract useful information, it is generally long-form and complex due to the ambiguous and esoteric nature of content. In this paper, we present FedNLP, an interpretable multi-component Natural Language Processing system to decode Federal Reserve communications. This system is designed for end-users to explore how NLP techniques can assist their holistic understanding of the Fed's communications with NO coding. Behind the scenes, FedNLP uses multiple NLP models from traditional machine learning algorithms to deep neural network architectures in each downstream task. The demonstration shows multiple results at once including sentiment analysis, summary of the document, prediction of the Federal Funds Rate movement and visualization for interpreting the prediction model's result.