Treasury Secretary Scott Bessent delivered a sharp rebuttal this week to former Labor Secretary Robert Reich after the progressive commentator publicly challenged his assessment of the U.S. economy.

The dispute centers on the so-called “K-shaped” economy, in which higher-income households advance while lower- and middle-income ones lag behind. Bessent had stated earlier in August on CNBC that “the K-shaped economy is over.” Reich responded with an open letter on Substack calling Bessent’s analysis “full of shite” and insisting the divide persists. He accused the Treasury secretary of failing to grasp the struggles of average working Americans and warned that current policies would worsen their situation.

Bessent replied on X with pointed sarcasm, noting that Reich “has come up short” and accusing him of economic “prestidigitation.” He highlighted that Reich himself conceded wages are growing faster for low-income workers, yet attempted to bury that fact under nearly 2,000 words. Bessent cited Bank of America data showing spending among lower- and middle-income households converging toward higher-income levels as those groups lead labor market gains.

The Treasury secretary also referenced Reich’s past controversies, including criticism over embellished accounts in his memoir Locked in the Cabinet, and dismissed Reich’s use of McDonald’s sales figures as evidence of middle-class distress by pointing to competition from Burger King. Bessent concluded that he does not like “punching down” and would not respond further to what he called Reich’s long pattern of packaging falsehoods as fact.

The exchange marks a new public clash between the Trump administration’s top economic official and one of its best known progressive critics.