US economists and CEOs are debating which letter best describes the American economy—K, C, or E—as the K-shaped economy concept, used since the COVID-19 recovery, is being challenged. Treasury Secretary Scott Bessent declared that the K-shaped economy is over and has been replaced by a C-shaped one, reflecting that lower-income earners are improving. Christopher Nassetta, CEO of Hilton Worldwide, also sees signs of a C-shaped economy. However, Anthony Chan, former chief economist at JPMorgan, believes that the war with Iran and high energy prices continue to pressure lower-income groups, so the K-shape has not disappeared. Data from the University of Michigan shows consumer confidence fell 11% in August, with lower-income groups hit hardest. Meanwhile, credit card balances in the second quarter stood at nearly $1.26 trillion, reflecting persistent inequality. Some economists are now proposing an E-shaped economy, which divides consumers into three income groups moving along parallel paths. Michael Eisenband of FTI Consulting argues that the E-shape better reflects different spending patterns, but the concept is new and not yet widely accepted.
Hilton Worldwide Holdings IncCEO sees C-shaped economy, implying improving lower-income demand, but article is a debate, not a concrete company event.
JPMorgan Chase & Co