Federal Reserve Chair Jerome Powell repeatedly described the labor market as solid and balanced at his press conference on Wednesday after the Fed held rates at 4.25%-4.50%. Still, he acknowledged there are downside risks.

Powell’s message to the markets: Given the uncertainties around Donald Trump’s tariffs and their economic impact, there’s no rush to cut rates, especially given that the labor market looks solid. The Fed chief doesn’t want to cut, only to see price pressures worsen and force an about-face by the central bank.