Bloomberg Talks Diane Swonk Talks Economic Data
Feb 11, 2026
Conversation covers the widening K-shaped recovery and the record split between corporate profits and wages. They discuss labor market healing, underemployment and inflation risks. Trading moves around Fed rate cuts and regional distress versus pockets of national strength also come up. Immigration effects on sectors like leisure and hospitality are examined.
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Profits Outpace Wages, Driving A K-Shape
- Corporate profits are capturing record shares while wages lag, creating a widening wealth gap.
- Productivity gains are accruing to capital owners, not workers, deepening the K-shaped recovery.
Slow Labor Healing Keeps The Fed Cautious
- The labor market shows healing but at a pace that may not force large wage gains.
- Slow unemployment improvement can keep the Fed cautious about cutting rates despite better labor readings.
Underemployment Still Elevated Beneath Headline Gains
- The U6 underemployment rate remains well above pre-pandemic levels despite headline unemployment falling.
- Declines in unemployment help some jobseekers but may prolong Fed inaction if slack persists in broader measures.