Cleveland Fed President Beth Hammack and Chicago Fed President Austan Goolsbee said inflation is a bigger concern than the labor market.
They rated inflation as orange-to-red, citing rising gasoline prices and Iran war‑driven energy shocks, suggesting support for tighter policy.
The unemployment rate fell to 4.3%, near full‑employment estimates, but the labor market was described as fragile and low‑hiring.
Financial system remains generally green despite stock market losses since the Iran war, indicating stable financial stability.