At the same time, it looks less likely that the labor market will weaken, Musalem said, in a speech to the Economic Club of Memphis. Musalem said his “base case” for the economy is for inflation to continue to soften toward the Fed’s 2% target.

The consumer-price index for October released this morning showed inflation was in line with expectations at 2.6%. Follow along for live updates on stocks, bonds and markets, including the Dow Jones Industrial Average,