U.S. economy's K-shaped gap narrows

The U.S. economy, which had long been split between booming spending among the wealthy and stagnant growth for everyone else, is showing signs of a more balanced recovery. This shift, where lower- and middle-income Americans are now catching up, is crucial because it reduces the economy's vulnerability to wealth-related shocks. Historically, the reliance on affluent consumers' spending growth posed risks, but this change suggests a broader, more inclusive economic rebound, which could lead to more stable and sustained growth in the future.