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Why a K-Shaped US Economy Is Raising Red Flags

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November 16, 2025

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The US economy appears remarkably resilient right now, but if you look closer, you’ll see a different picture emerge: a growing divide between America’s wealthiest consumers and everyone else.

Economists call this kind of bifurcated economy “K-shaped.” And as the top and bottom of the K have diverged, the overall economy has also become more top-heavy and more fragile.

On today’s Big Take podcast, host Sarah Holder is joined by Peter Atwater – the economist who popularized the idea of a “K-shaped economy” during the pandemic – and Bloomberg reporter Catarina Saraiva, who covers the federal reserve and labor market. They examine why this gap is widening, how it’s showing up in company earnings reports and what it means for the country’s overall financial health.

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The USK-shaped AndBig TakeSarah HolderPeter AtwaterCatarina SaraivaSubscribe Bloomberg NewsYouTube Connect

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Why a K-Shaped US Economy Is Raising Red Flags · Bloomberg News · Sentinel