Treasury Secretary Scott Bessent: 'K-Shaped Economy is Over' -- Market Talk

1245 ET - Treasury Secretary Scott Bessent proclaims "the K-shaped economy is over," in an interview with CNBC. The term describes higher-income earners thriving in the economy while lower-income earners struggle. Bessent says we are now seeing a more "C-shaped economy where the lower-end of wage earners are finally clawing it back." Bessent adds that the bottom quartile of wage earners have had, year-over-year, a 5.5% wage gain which is three times more than the top quartile. Last month, some economists also noted improvements in the K-shaped economy. "The gap between lower- and upper-income spending narrowed further in June, with lower-income households showing the strongest improvement in spending trends since 2021," a note from PNC Economics says.(jessica.coacci@wsj.com)

(END) Dow Jones Newswires

August 04, 2026 12:45 ET (16:45 GMT)