AI-based market intelligence tracking narratives around Federal Reserve balance sheet reduction, measuring the perceived pace, duration, and impact of quantitative tightening on credit conditions.

Central bank communication cycles — FOMC meetings, minutes releases, and Chair speeches — can shift sentiment readings sharply within minutes. Divergences between the Sentiment and Awareness scores are particularly informative: elevated Awareness with flat Sentiment often signals a policy event is being absorbed, not yet resolved.

Key Drivers

• FOMC meeting statements and minutes
• Fed Chair speeches and congressional testimony
• Dot plot rate projections
• CPI and PCE inflation releases
• Non-farm payrolls and unemployment data

Reading the Policy Bias Scale

• 0–20Extreme Easing. Coverage dominated by risk-aversion signals; narrative heavily skewed toward easing conditions.
• 21–40Easing. Below-neutral conditions with cautious market positioning; optimism subdued relative to the 30-day baseline.
• 41–60Neutral. Balanced coverage with no clear directional bias. Market is in a wait-and-see posture, awaiting a catalyst.
• 61–80Tightening. Positive momentum building in the narrative; coverage tilting toward tightening catalysts and upside scenarios.
• 81–100Extreme Tightening. Elevated risk of mean-reversion. Watch for sentiment exhaustion signals and divergence from the Awareness score.

How to Use This Index

• Use the Policy Bias score to gauge the prevailing narrative bias for Quantitative Tightening Sentiment at a glance.
• The Awareness score flags unusual spikes in coverage — early-warning signals that often precede price moves.
• Extreme readings (0–20 or 80–100) historically mark periods of heightened volatility and potential reversals.
• Compare across related topics to find cross-asset divergences and correlation breakdowns.
• Pro subscribers can view 3 years of history to calibrate thresholds against past market regimes.

This index is frequently referenced alongside quantitative tightening, fed balance sheet, ai liquidity sentiment, internet qt sentiment, alternative data monetary — helping traders and analysts track Quantitative Tightening Sentiment policy bias shifts in real time.