(NewsNation) — The U.S. economy is pulling apart: Booming for some, breaking for many.

In other words, it's looking K-shaped — one branch climbs while the other falls.

For those on the upper arm, things are going well. The top 10% of U.S. households now account for nearly half of all consumer spending, buoyed by record stock market highs. Hourly pay is now rising fastest for the highest earners, reversing a pandemic-era trend that favored the lowest-paid workers, according to the Federal Reserve Bank of Atlanta.

Meanwhile, those on the lower arm are feeling the squeeze. Grocery prices recently posted their fastest monthly increase in nearly three years, the job market is cooling and more subprime borrowers are falling behind on their car loans.

"There are now two Americas: A few, small

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