Treasury Secretary Scott Bessent Claims K-Shaped Economy Has Ended

Scott Bessent, the U.S. Treasury Secretary, stated in a CNBC interview that the K-shaped economy has ended and has been replaced by a C-shaped economy. Bessent claims that lower-income wage earners are now catching up to wealthier counterparts, citing a 2% real wage gain for the bottom 25% of workers.

He attributed this economic shift to the One Big Beautiful Bill Act, which provided tax cuts for Social Security, overtime, and tips.

However, federal and private sector data contest these assertions. The Federal Reserve Bank of Atlanta reported that the top 25% of earners continue to experience higher wage growth than the bottom quartile. Analysts from Goldman Sachs and Morgan Stanley argued that the benefits of the One Big Beautiful Bill Act were largely offset by rising gasoline prices caused by the Iran war, while Moody's noted that spending growth remains concentrated among high earners.