Economics & Macro · Signal-Driven#189

FOMC Statement-Diff & Dot-Plot Trading

The Fed's policy statement changes only a few words between meetings, and those words are chosen deliberately — dropping 'patient' or adding 'some further' is the actual message. You run an automated diff against the previous statement the instant it posts, score the changes on a hawkish-to-dovish scale calibrated on past reactions, and trade the follow-on markets about future meetings before the press conference even begins.

What you need to run it

  • Statement scrape at release with an automated word-level diff against the prior version
  • Scoring model calibrated on historical statement changes and subsequent market moves
  • Separate handling for the quarterly projections, where the dot plot dominates the text

Where this applies

Markets on Polymarket where fomc statement-diff & dot-plot trading is the natural play:

  • Will the Fed cut rates at the following meeting?
  • Will the Fed's next move be a hike?
  • Will the median 2027 dot show three or more cuts?

Capabilities this demands

Low latencyCustom code / APIDomain knowledge

At a glance

CategorySignal-Driven
MarketEconomics & Macro
Requirements3
CapabilitiesLow latency, Custom code / API, Domain knowledge
VenuePolymarket (CLOB, Polygon)

Build it

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This is documentation, not advice. Poly Research & Robotics publishes how these strategies work because the method should be checkable — not as a recommendation to trade them. See the full strategy database (297 strategies) or the data resources directory.
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