Economic Overview - Concerns are rising about a K-shaped economy in the U.S., where wealthier households are thriving while lower-income groups face significant challenges [1][2] - The economy is described as a "two-speed" economy, with widening income disparities and increasing pressure on low-income families [1][2] Consumer Behavior - Federal Reserve Chair Jerome Powell noted that many consumer-facing companies report a bifurcated economy, where lower-income consumers are struggling and shifting to lower-cost products, while higher-income consumers continue to spend [3][2] - Royal Caribbean Cruises Ltd reported strong customer spending in its Q3 earnings, indicating that wealthier consumers have robust financial health and a desire to spend on experiences [4] Labor Market Dynamics - Despite strong spending from wealthier households, millions of Americans are facing challenges in the labor market, with approximately 1.1 million job cuts reported in 2025, the highest level since 2020 [5]