Recent rates suggest there is a greater chance that inflation will remain stable or rise, St. Louis Fed President Alberto Musalem said Wednesday.

At the same time, it seems less likely that the job market will weaken, Musalem said in a speech to the Economic Club of Memphis.

Musalem said his “base case” for the economy is that inflation continues to slow to meet the Fed’s 2% target. He expects the job market to calm down but remain within the full employment range. Wage gains are expected to moderate, he said.