The chart of the week illustrates what many refer to as the “K-shaped” economy which is the widening divergence in how different income groups perceive economic conditions. It tracks consumer sentiment for three income tiers from 2019 to today. Throughout the entire period, households earning over $100k consistently report the strongest sentiment. All groups saw sharp declines in 2020 during Covid and again in 2022–2023 amid rising interest rates and inflation, though lower-income households experienced steeper and more prolonged downturns. Since mid-2023, sentiment has been recovering across all income levels, led by the highest-earning group. Today, the gap between high- and low-income sentiment remains significant, underscoring how economic conditions continue to be felt unevenly, the hallmark of a “K-shaped” economy.