US GDP Growth Moves Toward Zero

A new Wall Street Journal poll of prominent economists revised their collective GDP growth estimate for the year from 2.7% to 2.2%. To some extent the worry about a slowdown is based on the current price of the dollar. Another factor is a slowdown of economies overseas. Yet another is that consumer spending will be hog-tied by rising gasoline prices and mediocre job creation. As experts ratchet down expectations, more and more of them have stepped toward zero growth for U.S. gross domestic product this year.

The world of economists was shaken recently as the Atlanta Federal Reserve moved its forecast for this year to zero GDP growth. Some analysts believe that if the Fed raises rates, recent growth in business world, among consumers, in the stock market and in the housing market will deteriorate. At what point will consumers pull back if they see the value of their retirement…