Marketplace All-in-One In case you forgot, this is a K-shaped economy
Dec 8, 2025
Julia Coronado, an economist and founder of Macro Policy Perspectives, dives into the sticky inflation and the realities of a K-shaped economy, highlighting how wealthier households are benefiting disproportionately. Robert Byrne, a director at Technomic, shares insights on the dining habits of different income groups, revealing that lower-income households are eating out less, while high-income patrons continue to indulge in restaurant experiences. Together, they illustrate the growing economic divide and its effects on consumer behavior.
AI Snips
Chapters
Transcript
Episode notes
K-Shaped Economy Widens Gap
- Economists warn of a K-shaped economy where high-income people prosper while middle and lower incomes get pinched by sticky inflation.
- Julia Coronado says stock gains help the wealthy while persistent inflation hurts those without financial buffers.
Labor Weakness Shapes Fed Moves
- The labor market has weakened with private and public sector job losses and a creeping unemployment rate.
- Coronado links these labor concerns to the Fed's likely decision to cut rates by a quarter point.
Watch Data Before Betting On Rates
- Expect the Federal Reserve to cut interest rates by a quarter percent in the near term.
- Watch incoming data to judge whether further 2026 cuts will be needed.