We measure soft information contained in the U.S. Federal Reserve Chairs' congressional testimonies and analyze its effect on financial markets. Our measures of Fed Chair's emotions expressed via his/her words, voice and face are created using machine learning. Increases in the Chair's text-,...

We measure soft information contained in the congressional testimonies of U.S. Federal Reserve Chairs and analyze its effect on financial markets. Our measures of Fed Chairs' emotions expressed in words, voice and facial expressions are created using machine learning. Increases in the Chair's...