Quest for Robo-Yellen Advances as Computers Gain on Rate Setters

Move over Janet Yellen, automation in the workplace is about to get personal. Instead of relying on the Federal Reserve chair, imagine using a computer to transform mountains of raw economic data into reliable predictions for unemployment, inflation and gross domestic product. What’s the best level for the federal funds rate? Press . “The capability is here,” says Andrew Lo, director of the Laboratory for Financial Engineering at the Massachusetts Institute of Technology, near Boston. “The biggest hurdle is the cultural barrier. You’ve got a lot of central bankers who are not as open to technology.” Artificial intelligence, or AI, may be on the verge of improving the economic forecasting that serves as the foundation for monetary policy making. The Bank of England, behind Chief Economist Andrew Haldane, has quietly…


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