In a speech yesterday, Fed Chairman Jerome Powell said the US is at a "tipping point" where growth and hiring could pick up in the coming months, thanks to increased COVID-19 vaccinations and strong fiscal stimulus.

He mentioned that 916,000 jobs were created last March, which is the largest increase recorded in seven months. Accordingly, consumer prices rose at a very fast pace, as reported by the US Department of Labor last Tuesday.

However, Powell and other Fed members reiterated that this doesn't mean that the central bank will change its monetary policy, especially since it intends to support the economy until the crisis is over. According to them, the US still lacks 8.4 million jobs compared to pre-pandemic levels.

Instead, the Fed will reduce the volume of monthly bond purchases, before committing to higher interest rates.

To add to that, policymakers already agreed to keep interest rates near zero and continue to buy $ 120 billion in bonds a month until significant progress is made towards the Fed's maximum employment and inflation targets. Fed officials will meet again in two weeks for their next policy meeting.