Is the economy red, orange, yellow or green?

The U.S. economy's paradoxical state is examined through the perspectives of Beth Hammack, president of the Federal Reserve Bank of Cleveland, and Austan Goolsbee, president of the Federal Reserve Bank of Chicago. They assess inflation, jobs, and financial stability using a color-coded system. Both agree inflation is in the "orange" range, with Goolsbee noting rising gas prices and potential stagflationary shocks. On employment, Goolsbee suggests a "yellow" rating due to low hiring and firing rates, while Hammack leans towards "chartreuse," highlighting a fragile balance and difficulties for new workforce entrants. Hammack views financial stability as generally "green," while Goolsbee distinguishes between the stable payment system ("forest green") and potentially frothy valuations in the broader financial sector ("yellow").