Photo :AI-generated. 

September 28, 2025

Anna Murray 

George Washington University researchers used artificial intelligence (AI) to simulate a Federal Open Market Committee (FOMC) meeting. The Fed is "only partially insulated from politics," according to the study by scholars Tara Sinclair and Sophia Kazinnik. They also found that external scrutiny can affect internal discussions.

AI agents are trained on real policymakers' backgrounds, speeches, and policy positions. The simulation uses real-time economic data and news to make decisions. AI modeled and replicated the July 2025 FOMC meeting. The results showed that disagreement increased and board members grew more polarized when political pressure was applied.

In an AI-simulated environment, this new study has demonstrated how political pressure can affect the U.S. Federal Reserve's decision-making. The Bank for International Settlements has emphasized AI's growing strategic role in central banking, but also the importance of good governance and reliable data as usage grows.