U.S. Treasury Secretary Scott Bessent stated earlier this month that the "K-shaped economy is over" and it's now more like a "C-shaped economy," with low-income workers catching up. Data from the Bank of America Institute shows that in July, the average annual growth in after-tax wages for low-income U.S. households was 5.2%, surpassing high-income households for the first time since December 2024, and debit and credit card spending also converged. However, FICO data indicates a slight increase in mortgage and auto loan delinquency rates for borrowers with low credit scores. Some economists believe that housing affordability and student loan repayment pressures remain widespread issues across all income levels in the U.S., suggesting the economic shape might be "E-shaped" or "X-shaped."