The economy looks resilient, but beneath the surface it’s increasingly divided. In this episode of “Credit Currents,” Mark Zandi, Chief Economist at Moody’s Analytics, and Atsi Sheth, Chief Credit Officer at Moody’s Ratings, discuss the growing impact of the K-shaped economy. They explain how higher-income households are fueling a disproportionate share of consumer spending, while lower-income consumers face rising costs for essentials like gas, food and housing. This imbalance is reshaping demand across sectors, from premium travel and luxury goods to credit access and essential retail. Watch to understand how this dynamic creates a more fragile and vulnerable economy. Listen to "Inside Economics Podcast: #235 - The K Shaped Economy with Heather Long" here: https://youtu.be/XwnMGtBk6_A?si=YXINDfkqzV-d7G9l Host: Patrick Ronk, Vice President, Moody’s Ratings Guests: Mark Zandi, Chief Economist, Moody’s Analytics Atsi Sheth, Chief Credit Officer, Moody’s Ratings Related Research: •Global Macro Outlook (May 2026 Update) - Global energy market stress weighs on growth prospects (https://www.moodys.com/research/Global-Macro-Outlook-May-2026-Update-Global-energy-market-stress-weighs-Outlook--PBC_1478691) •The State of the Consumer (March 2026) – US - Higher energy prices and a narrowing consumption base pose risks to spending (https://www.moodys.com/research/The-State-of-the-Consumer-March-2026-US-Higher-energy-Sector-In-Depth--PBC_1475414) •The State of the Consumer (May 2026) – Europe - Middle East conflict will weaken consumer confidence and nascent economic recovery (https://www.moodys.com/research/The-State-of-the-Consumer-May-2026-Europe-Middle-East-Sector-In-Depth--PBC_1475528) •Geopolitical Risk – Global - Prolonged Strait of Hormuz disruption through autumn broadens credit stress (https://www.moodys.com/research/Geopolitical-Risk-Global-Prolonged-Strait-of-Hormuz-disruption-through-autumn-Sector-In-Depth--PBC_1482861#290612199861c31d1036b185b4e69b75) © 2026 Moody’s Corporation and/or its licensors and affiliates. All rights reserved. Go to www.moodys.com/pages/globaldisclaimer.aspx for complete legal terms and conditions governing use of Moody’s information made available in this video.

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