Why the K-Shaped Economy Threatens US Growth

Is the US economy increasingly dependent on high-income consumers?

In this episode of “Credit Currents,” Mark Zandi, Chief Economist at Moody’s Analytics, and Atsi Sheth, Chief Credit Officer at Moody’s Ratings, examine the reality of the K-shaped economy.

They explore how the top 20% of earners now drive roughly 60% of spending, while lower-income households face mounting pressure from rising costs of essentials like food, fuel and housing.

From premium airline demand to tightening credit conditions and weakening real income growth, this episode highlights why economic growth may appear stable, but is becoming increasingly fragile and concentrated.

Host:

Patrick Ronk, Vice President, Moody’s Ratings

Guests:

Mark Zandi,Chief Economist, Moody’s Analytics

Atsi Sheth, Chief Credit Officer, Moody’s Ratings

Related Research: 

• Global Macro Outlook (May 2026 Update) - Global energy market stress weighs on growth prospects
• The State of the Consumer (March 2026) – US - Higher energy prices and a narrowing consumption base pose risks to spending
• The State of the Consumer (May 2026) – Europe - Middle East conflict will weaken consumer confidence and nascent economic recovery
• Geopolitical Risk – Global - Prolonged Strait of Hormuz disruption through autumn broadens credit stress

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