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December 2, 2025

Here's why everyone's talking about a ‘K-shaped' economy

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON — From corporate executives to Wall Street analysts to Federal Reserve officials, references to the “K-shaped economy” are rapidly proliferating.

So what does it mean? Simply put, the upper part of the K refers to higher-income Americans seeing their incomes and wealth rise while the bottom part points to lower-income households struggling with weaker income gains and steep prices.


 
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