The US is on the brink of a recession, or so the latest data suggests. The Fed’s stringent financial policies, coupled with soaring inflation rates, supply distortions in the food and energy sector as well as volatile global diplomacies have led to significant insecurities among the population. Real GDP data shows the negative growth for a consecutive two quarters of 2022, and it really hints that the economy is going through a turbulence.
With this whitepaper, we aim to analyze data facts and explore the rational justifications to indicate whether a US-induced global recession is a legitimate possibility or not. Based on our assessment and deconstruction of our analysis of the associated macro parameters, we try to envisage the bigger global picture in terms of energy transition, supply-side bottlenecks and socio-political diplomacies, and offer a list of insights not only for the US but the world economy.