Treasury Secretary Scott Bessent reports wage growth outpaces inflation, signaling end of K-shaped economy

Treasury Secretary Scott Bessent says wage growth is outpacing inflation, particularly for lower-income and blue-collar workers under the Trump administration. Bessent pointed to Treasury data showing a 2% real wage gain for workers in the bottom 25% of earners based on 2025 metrics. Blue-collar workers specifically saw 1.7% wage growth in the first five months of Trump’s current term. The numbers behind the narrative The Atlanta Fed Wage Growth Tracker shows 3.6% growth for the lowest income quartile as of June 2026. The top income quartile, meanwhile, reported a 12-month moving average of 3.9%. Average hourly earnings rose 3.5% year-over-year through March 2026. After adjusting for inflation, that translates to a real wage increase of 0.3%. Bessent used these figures to declare the end of the K-shaped economy, a term that became shorthand for a recovery where high earners surged ahead while lower-income workers treaded water. Why crypto investors should care about paychecks If wages keep climbing, the Federal Reserve has less incentive to cut rates. Higher wages can feed into services inflation, and rate cuts, or at least the expectation of them, have historically been rocket fue...