E14 | An uneven US economy: AI growth, inflation and the ‘K economy’ | Iowa Economy

The U.S. economy continues to show surprising resilience, bolstered by AI-driven investment, but economists Eugenio Alemán and Ben Ayers say the benefits of that growth are far from evenly distributed. In this episode, host Chris Conetzkey discusses persistent inflation, elevated interest rates, soaring fuel costs, and the growing divide between households benefiting from rising wealth and those struggling with higher everyday costs. They also look ahead to 2027 and what could determine whether the economy's current strength broadens to more households and businesses. Guests: • Eugenio Alemán, senior vice president and chief economist, Raymond James • Ben Ayers, senior economist, Nationwide On this episode: • The Federal Reserve's inflation fight, the impact of higher borrowing costs on commercial lending and housing, and why today's interest-rate environment may represent a return to a more normalized level. • How rising oil and diesel prices could feed into transportation, agriculture, food and other business costs, and when those could reach consumers. • How a "K-shaped" economy is taking shape across the country benefiting wealthier households while many others face stagnant incomes and higher costs