The Federal Reserve releases its semi-annual monetary policy report: Inflation expectations are generally in line with the 2% target

The Federal Reserve released its semi-annual monetary policy report stating that U.S. inflation expectations are generally in line with the 2% target, inflation has slowed significantly, but remains high, and the labor market remains relatively tight; demand has slowed, and supply trends are rising. Wage growth slows in 2023 but remains above the pace consistent with 2% inflation. Risks to achieving the target are leveling out; the Fed remains highly focused on inflation risks. The likely rapid adoption of new technologies such as artificial intelligence and robotics in the coming years is expected to boost productivity growth beyond the current modest pace. The U.S. banking system is sound but there are several areas of concern. (Golden Ten)