ChatGPT can accurately parse Fed statements and anticipate stock moves from corporate news, studies say

• One study found that ChatGPT reasons similarly to humans when deciphering Fed statements.
• GPT-4, released in mid-March, was more likely to agree with humans than GPT-3.
• A separate study showed the chatbot can also make strong stock predictions based on corporate news. 

OpenAI's ChatGPT has shown an ability to decipher the meaning behind Federal Reserve statements and also exhibited predictive stock market capabilities in response to headlines, according to separate studies.

Researchers at the Richmond Fed said in a paper that ChatGPT can reason similarly to humans when decoding Fed speak.