Branches of K-Shaped Economy Diverging Even Wider: Clarida

• Richard Clarida agrees the US has a K-shaped economy, with its branches diverging more widely in the last 6-7 years.
• Roughly 60% of Americans, who own homes and stocks, have seen their wealth increase due to rising asset prices.
• The other 40% of Americans, who rent and don't own many stocks, have struggled, living paycheck-to-paycheck.

Former Federal Reserve Vice Chairman Richard Clarida confirms the existence of a K-shaped economy in the US, noting that the divergence between its two branches has widened significantly over the past six to seven years. He highlights that asset owners (homeowners, stock owners) are doing well, while renters and those living paycheck-to-paycheck are struggling.