The Federal Reserve will cut back its stimulus program more quickly than planned, as it ratchets up its response to rising inflation.
The US Central Bank had already announced it was tapering off the monthly support, introduced to bolster the economy during the pandemic.
But on Wednesday officials said the process would be speeded up, suggesting the stimulus will end by March.
The move opens the door to an interest rate rise in the first half of 2022.
“Economic activity is on track to expand at a robust pace this year, reflecting progress on vaccinations and the reopening of the economy,” said Federal Reserve chair Jerome Powell.
“In my view, we are making rapid progress towards maximum employment,” he said.
Demand remained “very strong”, although the arrival of the Omicron variant posed a risk to the recovery, he added.