Economists' consensus on the shape of the U.S. economy is crumbling, with Treasury Secretary Scott Bessent declaring the "K-shaped economy is over."
CNBC reported that economists widely believed the U.S. economy was experiencing a "K-shaped" recovery post-pandemic, meaning uneven expansion across different groups, but this consensus has now dissolved. U.S. Treasury Secretary Scott Bessent stated earlier this month that the "K-shaped economy is a thing of the past," replaced by a "C-shaped economy," implying that lower-income consumers are catching up, thanks to wage growth for lower-income individuals and significant tax cuts this year. Christopher Nassetta, CEO of Hilton Worldwide, also noted signs of a "C-shaped economy," with the middle class regaining vitality. However, Anthony Chan, former chief economist at JPMorgan Chase, believes that the conflict between the U.S. and Iran has led to soaring energy prices, which disproportionately affects lower-income consumers and will erode any gains made by this group, thus the "K-shaped economy" has not ended. A survey released by the University of Michigan on Friday showed that the consumer sentiment index fell by 11% year-on-year in August, with confidence among lower and middle-income respondents particularly hard hit.
Source:CNBC市场 · Source Link
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