Federal Reserve Chairman Jerome Powell said on Wednesday that this is still too early to start thinking about tapering the Fed's bond-buying program.
Speaking at a press conference after the central bank voted to keep interest rates near zero, Powell reiterated the Fed's intention to continue purchases "until we see actual and substantial progress."
Moreover, the FOMC indicated no rate hikes through 2023 despite signs that the recovery has been accelerating. At the moment, four Fed officials see rates increasing in 2022, while seven members expect rate hikes in 2023.
"The path of the economy will depend significantly on the course of the virus, including progress on vaccinations. The ongoing public health crisis continues to weigh on economic activity, employment, and inflation, and poses considerable risks to the economic outlook," the Fed said in its statement.
Finally, the Fed said it would continue its 120 billion dollars monthly bond purchases, while officials also raised their GDP growth forecast for 2021 from 4.2 percent to 6.5 percent.