Growing Concerns: American Consumers Fear Economic Fallout from Debt Default and Inflation Spike

The potential of a US debt default crisis is beginning to worry Americans, with a new survey revealing that the "debt crisis standoff" is one of the factors contributing to a decline in consumer sentiment. Since consumers are already feeling gloomy about the economy, the fallout from a debt default could be even worse. Treasury Secretary Janet Yellen recently circled June 1 as the first potential day the US may not be able to satisfy all its obligations. A default on US obligations would produce an economic and financial catastrophe, Yellen said.