He is referring to those in Jerusalem who were acting wickedly and feeling no embarrassment or guilt about that. In New Testament terms, their consciences were seared (1 Timothy 4:2), as they no longer had much awareness of God.1 Further, they apparently were flattering themselves with the notion that the Lord would bear with their wickedness. They were so hardened in their wickedness as to be unable to even acknowledge wrongdoing.2
5 The LORD within her is righteous; he does no injustice; every morning he shows forth his justice; each dawn he does not fail; but the unjust knows no shame.