Cleveland Federal Reserve President Beth Hammack and Chicago Fed President Austan Goolsbee have voiced serious concerns regarding inflation, which they believe is overshadowing employment issues. In a recent interview, Goolsbee described the inflation outlook as shifting from 'orange' to 'red,' citing rising gasoline prices and persistent tariffs that have failed to decrease. He noted the troubling economic situation exacerbated by the ongoing Iran war, which has contributed to increased energy prices. Hammack echoed these sentiments, stating that inflation has been above target for five years and has remained stagnant for the past two. She rated the inflation outlook as a vibrant 'orange,' indicating a troubling trajectory. The latest Labor Department report showed a drop in the unemployment rate to 4.3%, attributed to many workers exiting the labor force. While Hammack considers the labor market to be near full employment, Goolsbee remains cautious, assigning a 'yellow' rating due to low hiring and firing rates amid economic uncertainty. Despite recent stock market losses linked to the Iran conflict, Hammack believes the financial system is stable, though Goolsbee expressed concerns about asset prices, suggesting potential frothiness in the market.