What Executives Are Saying About the 'K-Shaped' Economy

The U.S. economy is growing, but not evenly. What began as an uneven rebound from the Covid pandemic has hardened into what many economists describe as a "K-shaped" economy, in which higher-income households pull ahead while lower-income households fall further behind. High interest rates, rising costs and the rapid growth of artificial intelligence could deepen those divides, economists warn. "We are returning to a typical pattern of extremely high income inequality, and it now stands at a 60-year peak," Beth Ann Bovino, chief economist at U.S. Bank, wrote in a recent report. "The worry is not just where we stand now, but also whether ongoing developments will worsen the situation."