What is a 'K-shaped' economy, and what’s causing the divide?

The “K-shaped” economy, widely touted in the financial press, is the latest expression of wealth inequality. The U.S. economy is experiencing a growing gap between the highest earners and the richest corporations, who are spending and expanding their wealth, and the lowest-income households and mom-and-pop companies, who struggle to pay their bills day to day. Following the second short-term interest rate cut on Oct. 29, Federal Reserve Chairman Jerome Powell said, "A further reduction in the policy rate ...