The Fed stuck to its don’t-rock-the-boat stance today by holding rates steady and emphasizing the relative health of the U.S. economy.

As he has in the past, Fed Chairman Jerome Powell pointed to the strong labor market, which he said should buoy consumer spending in the months ahead. Risks from trade wars, a manufacturing slowdown and a hard Brexit appear to have dimmed, he added.

But coronavirus represents a new risk on the horizon that officials are closely monitoring, he said.

Mr. Powell also said the Fed plans to keep injecting cash into volatile financial markets until at least April. What happens then remains to be seen.

Responding to a question on financial stability, Mr. Powell pointed, once again, to high levels of corporate debt and rising asset prices as possible risks. “We do see asset valuations as being somewhat elevated,” the chairman said.

Mr. Powell also appeared more willing to discuss the risks posed by climate change than he has in the past. And on the overhaul of the Community Reinvestment Act, the chairman said he was “comfortable” with the vision outlined by Fed governor Lael Brainard.