Fed's Musalem: higher inflation, softer labor market now his baseline view

April 11 (Reuters) - St. Louis Federal Reserve Bank President Alberto Musalem on Friday it's now closer to his "baseline" view, rather than just an outside risk, that the labor market will soften even as inflation rises due to tariffs, and the effects could take months, quarters, or even years to work their way through the economy.

"Those tariffs, if implemented, if fully implemented, pose upside risks to inflation," he told the Arkansas Bankers Association. Financial conditions have tightened overall, he said, and if that continues for more than a few weeks, that could dampen economic activity.