We study international monetary policy comovement using a large language model to analyze statements from 32 central banks. Federal Reserve guidance predicts subsequent policy guidance abroad, while its growth and inflation assessments show no comparable predictability. This guidance relationship strengthens with financial stress and capital-account openness, suggesting a financial channel. Consistent with this interpretation, central banks more often explain how external conditions affect domestic risks and policy choices when guidance is collectively closer to the Fed's. Guidance alignment also has exchange-rate implications: closer prior guidance is associated with less currency depreciation following unexpected upward revisions to the U.S. policy-rate path.
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