Mike Groll, AP
A motorist pumps gas at a Mobile station in Albany, N.Y., on Friday, March 16, 2012. Higher gas prices slow the economy because they force many consumers to cut their spending on other goods, from appliances and furniture to electronics and vacations.

Rising gas prices and uncertainty over demand have and are holding the economy down, author and former General Electric CEO Jack Welch told CNBC.

Welch believed the economy was on the cusp of a strong comeback when GDP growth hit 3 percent. But high gas prices and hard to obtain credit have made it difficult for the economy to boom, he told CNBC. The price of gasoline is getting close to $4 a gallon across the nation. Gas is up 22 cents per gallon over the past month, and up 33 cents over the past year, according to AAA. When gas prices hit their record high in July 2008, the price was only 20 cents higher than it is now.

"It's not taking off. We're sort of relatively strong but not booming," Welch told CNBC. "I am normally to one extreme or another and I'm a little shaken about not knowing where this is going."

Changes in how the tax code is set up and regulations from the Federal government also worry Welch, according to the article.

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