Arpitrage · 12 November 2026 · Additional Read

Inside the Hall of Mirrors

Arpit Gupta

A new study using AI to analyze 300,000+ macro analyst reports finds that increased Fed communication pulls forecaster attention away from the economy toward Fed policy itself, making analysts better at predicting interest rates but worse at forecasting GDP and inflation—validating Chair Warsh's concern that central bank communications create a 'hall of mirrors' problem.

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Topics: Banking & Capital Markets · Data & Analytics

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