Scott Bessent Says K‑Shaped Economy Is Over, Now C‑Shaped

Treasury official Scott Bessent told CNBC that the United States’ “K‑shaped” economy has ended and is now forming a “C‑shaped” pattern, with wage gains among the lowest‑income quarter beginning to outpace those of the top earners. He cited recent data showing modest real wage increases for the bottom 25% of workers and pointed to recent tax cuts enacted by the Republican administration as a source of relief.

Analysts note that inflation remains elevated, partly due to higher gasoline prices linked to the war with Iran, and consumer sentiment stays low despite a record‑high S&P 500 that President Donald Trump highlighted in a Nevada speech. The Treasury department did not specify which wage data underpinned Bessent’s claim, and economists caution that the overall economic picture remains mixed.