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Treasury: C-Shape Economy Boosts Low Wages, Credits Tax Cuts

8/6/2026

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Summary

Story summary

Treasury Secretary Scott Bessent told CNBC on Tuesday that the “K-shaped” economy is over and the economy is now forming a “C” shape.
He said wage gains among the bottom quarter of earners are beginning to outpace gains among the top fourth.
Bessent downplayed inflation’s impact on lower-income Americans and attributed upcoming relief to the tax cuts Republicans enacted last year.

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Story summary

Treasury Secretary Scott Bessent told CNBC on Tuesday that the “K-shaped” economy is over and the economy is now forming a “C” shape.
He said wage gains among the bottom quarter of earners are beginning to outpace gains among the top fourth.
Bessent downplayed inflation’s impact on lower-income Americans and attributed upcoming relief to the tax cuts Republicans enacted last year.