Wal-Mart CEO Mike Duke raised a red flag about a U.S. default's damaging impact to Wal-Mart's paycheck-to-paycheck shoppers.
NEW YORK (CNNMoney) -- Wal-Mart CEO Mike Duke warned lawmakers that a U.S. default would be very difficult for the nation's economy and "devastating" for Wal-Mart's consumers.
"A default and the ripple effect would be impactful," Duke told a Senate panel on Wednesday. "It would be very, very difficult for the American economy to withstand at this point in time in our history.
Wal-Mart (WMT, Fortune 500), the world's largest retailer, which averages 140 million shoppers weekly to its stores in the U.S., is considered a barometer of the health of consumers and the economy.
Duke said Wal-Mart's customers -- many of whom live paycheck-to-paycheck -- are closely watching events in Washington.
Should the government default, Duke said higher interest rates as a consequence "clearly would have an effect on consumption and the ability of the consumer to regain confidence."
Duke added: "Representing our consumers, we think that would be very, very difficult for the American economy to withstand at this point in time.
"I'm out every week talking to customers in our stores [and] I'm not getting a sense of confidence," he said. "With the job situation and other factors facing consumers, I think a default at this time would be devastating." 
