Americans’ confidence in the United States economy fell in May to the lowest level in the past six months on fears that political negotiations to raise the federal government’s borrowing limit could trigger a recession, Reuters reported.

A survey released Friday by the University of Michigan also showed consumers’ long-term inflation expectations rose this month to their highest level since 2011, bad news for the Federal Reserve after it signaled last week that it could break its fastest cycle tightening of the US central bank. since the 1980s.

“This report has some stagflation. This increase in inflation expectations is likely to fuel a lively debate on whether to raise or hold rates again at the June 14 meeting,” said Conrad DeQuadros, senior economic adviser at Brean Capital in New York.

The overall consumer confidence index came in at 57.7 this month, the lowest reading since November last year and down from 63.5 in April.

Economists polled by Reuters had forecast preliminary readings at 63.0.

The survey’s index of current economic conditions fell to 64.5 from 68.2 in April. The index of consumer expectations fell to 53.4 from 60.5 in the previous month.

Poll director Joan Hsu attributed the deterioration in consumer confidence in part to divisions in Washington and warned that “if policymakers fail to resolve the debt ceiling crisis, these gloomy views on the economy will exacerbate the severe economic consequences of a default.”

The nonpartisan Congressional Budget Office warned Friday that the country faces a “significant risk” of default in the first two weeks of June without a debt hike.