After a brief expansion，the U.S. economy fell into a “technical” recession with two quarters of negative growth in the first half of 2022. As the labor market remains strong，a substantial economic recession identified by the NBER has not yet occurred，but the lack of stamina in consumption and consecutive negative growth in investment suggest that the momentum of growth is waning. With the withdrawal of the expansionary fiscal policy，the U.S. fiscal deficit has shrunk significantly，but the cost of interest payment will increase year by year due to interest rate hikes，and the long-term debt burden may not be sustainable. Recently，the US government introduced the “Inflation Reduction Act”，which is conducive to promoting the US energy transition and climate response，but its role in controlling inflation is almost negligible. As inflation remains high，and the factors causing inflation are gradually shifting from the supply side to the demand side，the Federal Reserve has been forced to continue to raise interest rates substantially. Driven by rising interest rates，the U.S. dollar index entered a relatively strong cycle，U.S. stocks experienced a significant decline，and the U.S. bond yield curve inverted. High inflation，tight labor market and negative real interest rates have left the Fed with very little room to achieve a “soft” landing for the economy.