The latest Fed Beige Book has been released, using a rather contradictory phrase - "moderate expansion and localized weakness coexist". Translated, it means: some make money, while others only have soup; the K-shaped divergence in the consumption market has become visibly apparent.

Economically, the orders in the service industry, high-tech, and new energy manufacturing are still relatively stable. But real estate? It's being crushed by high interest rates. Small and medium retailers are also struggling. Even more bizarre is the employment data: job growth is slowing down while wages are still increasing, creating a full sense of contradiction.

The consumer end is the hardest hit. Wealthy people? They still buy luxury goods and seek high-end experiences, with high-end retail revenue increasing by over 8% year-on-year. What about ordinary workers? They face a double whammy of inflation and high debt, choosing to avoid non-essential purchases and flocking to budget channels, with some even cutting back on daily expenses. Mid-range brands? They are disappearing in large numbers.

Where is the problem? There is a dual tearing of income and assets. Wages are rising for high-skilled positions, and those with assets are seeing their wealth increase; meanwhile, wages for low-skilled positions remain stagnant, and the purchasing power of working-class families is being eroded by inflation. The Fed has already issued a warning: this kind of tearing may undermine the sustainability of economic growth.