Federal Reserve chair Jerome Powell has expressed concern over the so-called "K-shaped" economy the U.S. is experiencing.

What Is A 'K-Shaped' Economy?

Talk of a "K-shaped" economy has been brewing recently—where two groups experience increasingly different financial circumstances. The top arm of the K represents higher-income Americans whose wealth and incomes continue to climb, while the lower arm shows households with weaker income growth and heavy price pressures.

What that means is while higher-income consumers—bolstered by gains in the stock market and rising home values—are still spending, lower-income households are reigning back as inflation erodes their purchasing power and the job market tightens.

This has certainly been true in America: Bank of America Institute data fou

See Full Page