According to a new report from the University of Michigan, US long-term inflation expectations for the next five to ten years are at a 12-year high, coming in at a surprising 3.2% in early May. This new data suggests that consumers anticipate costs rising 4.5% over the next year, reflecting growing concerns about the economic outlook and a sense of unease over inflation. Moreover, the consumer sentiment index has reached a low of 57.7 since November, which suggests further evidence of a disconcerting trend. This sentiment has become more pronounced due to the question of the US government’s debt default. Political impasse and protracted debates about raising the debt ceiling have dragged on for weeks, making many Americans worried that the government won’t meet its financial obligations. If this continues, the dismaying view of the economy will only deepen. In the past, sentiments have bounced back soon after crises ended, but a subsequent default will not augur well for America’s economy. Already, pessimism among consumers is affecting their spending power, leading to a purported decline in retail sales.