U.S. Economy to Stall

As mentioned several times on this blog and now finally confirmed the economic growth in the U.S. will come to a halt in the first six months of 2008 as consumer spending cools, as several Europe countries follow the same trend.
The US economy will not expand at all from January through June, according to the median estimate of 62 economists surveyed from April 2 to April 8. A majority now projects the U.S. is, in a recession.
Job losses, falling home values and credit restrictions are plaguing consumers already burdened by soaring food and oil bills. Federal Reserve Chairman will cut interest rates again, the American consumer is pretty dismal right now as they have three to six months to work out the recession.
Increases in fuel prices are hitting the consumer hard as demand is deteriorating rapidly... The US will have the smallest two-quarter gain since the six months that ended March 1991.
Perhaps spending will pick up in the latter half of 2008 as Americans receive tax-rebate checks under the $168 billion stimulus package passed by Congress and the administration, however i think the plan is unlikely to have a lasting effect as debt- ridden consumers will probably use some of the money to pay off loans or shore up savings.
The Fed will trim the benchmark rate by a half point to 1.75 percent by June and keep it there the rest of the year, the fastest drop in borrowing costs in two decades.
Consumer confidence will keep dropping to a 16-year low as the average price of regular gasoline will hit record of over $3.34 a gallon... and employment will continue to over 5.5 percent during this year..