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U.S. Economy Faces K-Shaped Growth and Rising Inequality

10/18/2025

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Summary

Story summary

Steve Rattner on Morning Joe says the U.S. economy may be entering a K-shaped period where growth benefits the wealthy.
GDP growth slowed to 1.6% in early 2025, with AI investments driving a significant share of that growth.
Wage growth shows divergence: bottom quartile up 3.6% and top quartile up 4.6%.
He cites rising income inequality and a tough job market, with large firms hiring while smaller firms cut jobs.

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Story summary

Steve Rattner on Morning Joe says the U.S. economy may be entering a K-shaped period where growth benefits the wealthy.
GDP growth slowed to 1.6% in early 2025, with AI investments driving a significant share of that growth.
Wage growth shows divergence: bottom quartile up 3.6% and top quartile up 4.6%.
He cites rising income inequality and a tough job market, with large firms hiring while smaller firms cut jobs.