Commentary: As recession fears mount, US exceptionalism comes under strain
US QUESTIONING
While Mr. Powell eased fears of a US crisis by implying that the Fed will continue to cut interest rates this month, it is still unclear whether such slashes will have the same impact on the economy, where policy uncertainty triumphs over political and trade norms.  ,
However, falling client attitude and spending, a possible slowdown in hiring, a decline in factory output, a decline in business confidence, and rising import prices threaten to stifle” US exceptionalism.”
This is crucial because for the past 80 years, this alleged “exceptionalism” has been the driving force behind the expansion of many economies around the world. More than just US defense supremacy, it is US “economic exceptionalism” and supremacy that have helped economy from Peru to Poland, Jamaica to Japan, and Austria to Australia. On the backside of US customer need, China also stepped up.
Given the inherent power of that market, projections of an illegal US recession seem a little inflated at the moment. However, economists had predicted a US economic downturn sometime later this year as quick as mid-2024. Trump’s aggressive industry policies could only speed up and exacerbate the process.
Steering Through Uncertainty, an interim report from the Organization for Economic Co-operation and development ( OECD ), was released on March 13 and warned of a weakening global growth outlook.
The organization still anticipates a 2.2 % growth in the US economy this year, but it may experience a 1.6 % decline in 2026 as uncertainty and tariffs come into play.
According to OECD estimates, there will be more effect on Canada and Mexico, which are currently subject to US taxes. Mexico is expected to enter a recession, while OECD reduced Canada’s growth to 0.7 % this year and next. China will challenge as it adjusts to 20 % taxes while dealing with its ailing economy.  ,
However, if government stimulus ( Germany, Europe’s largest economy, just announced a massive €500 billion ( US$$ 540 billion ) stimulus package ) and increased defense spending have their intended effects, Europe could experience a revitalization despite the threat of higher sanctions.