US Treasury Secretary Scott Bessent said the “K-shaped” economy is over, arguing that the divergent fortunes of wealthy and lower-income Americans are beginning to converge. The claim matters because the term has become a widely used description of an economy in which asset owners and higher earners benefit while many households face persistent pressure from everyday costs.

Bessent said the economy was becoming “C-shaped”, citing faster wage growth among the lowest-paid workers than among the highest earners. Critics and recent reporting have pointed to continuing disparities: the top 20 per cent of households accounted for nearly 60 per cent of consumer spending in the first quarter, while lower-income Americans remain especially exposed to costs such as food, fuel and rent.