In 2022，despite a declining economic impact of the Covid-19 pandemic，the U.S.economy encountered serious domestic and external challenges，with the exposure to Russian-Ukraine Conflict in particular. The U.S.annual output growth rate fell from 5.9% in 2021 to 2.1%. Meanwhile，the Conflict has led to a tremendous surge of energy and food prices，spurring skyrocketing inflation，forcing the Federal Reserve to raise the federal funds rate seven times a year，and finally the price growth gradually slowed down. The labor market remained to be tight since 2021 with constant low unemployment rate. Both exports and imports continued to grow，but the trade deficits further widened. On the policy front，the Biden administration continued its path towards the “Build Back Better” blueprint and put forward a series of policy measures，aiming at improving people’s livelihood and enhancing U.S.competitiveness. The Congress passed the Inflation Reduction Act of 2022，which is designed to augment the support for clean energy，climate，and Medicare reform as well as reducing the fiscal deficits in the longer term. Previewing the U.S.economy in 2023，its primary challenge lies in how to keep inflation in check while avoiding a recession. Besides，along with the implementation of economic stimulus packages in the past two years，the Federal debt level was quickly climbing up and has reached the debt ceiling. In the context of massive partisan divide in Washington，whether the Congress will be able to reach a consensus on debt ceiling adds new uncertainty to the economic outlook.