Fed Officials Sound Alarm: Inflation a Burning Issue

Cleveland and Chicago Fed presidents warn 'orange' is the new red as price pressures persist

Apr. 11, 2026 at 6:05am

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A minimalist composition of overlapping geometric shapes in shades of orange, red, and yellow, conceptually representing the persistent and concerning nature of high inflation that is overshadowing employment trends.The Federal Reserve's vivid warnings about the 'orange' status of inflation underscore the gravity of the economic situation and the potential for far-reaching consequences if policymakers misstep.Chicago Today

Federal Reserve officials are sounding the alarm on inflation, using vivid language like 'orange with a chance of meatballs' to describe the stubborn price pressures facing the economy. Cleveland Fed President Beth Hammack and Chicago Fed President Austan Goolsbee see inflation as the bigger threat, even as the job market remains sluggish. Their warnings suggest the Fed is closer to a full-blown crisis than it would like to admit.

Why it matters

The Fed's struggle to rein in inflation while avoiding damage to the fragile job market highlights the delicate balance policymakers must strike. The contrast between their views on inflation and employment raises deeper questions about whether the central bank is focusing on the right metrics. The psychological impact of these economic signals also underscores the uncertainty facing businesses and consumers.

The details

Hammack and Goolsbee have painted a concerning picture of the economy, with Goolsbee describing inflation as 'orange with a chance of meatballs' and Hammack using terms like 'burnt orange' and 'burnt sienna' to convey a sense of urgency. Despite efforts to control inflation, it has remained stubbornly high for five years, running above the Fed's 2% target. Meanwhile, the March jobs report showed a significant payroll gain, but the unemployment rate dropped mainly because workers left the labor force, which Hammack called a 'fragile balance'.

  • For five years, inflation has been running above the Fed's 2% target.
  • The March jobs report showed a significant payroll gain, but the unemployment rate dropped mainly because workers left the labor force.

The players

Beth Hammack

President of the Cleveland Federal Reserve.

Austan Goolsbee

President of the Chicago Federal Reserve.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.