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.

The unemployment rate held at 4.2%, with 7.2 million people unemployed. While sectors such as health care and social assistance posted moderate gains, the broader labor market showed signs of stalling and downward revisions to May and June payrolls erased a combined 258,000 jobs, painting a more cautious picture.