Washington (TIP): The US economic recovery remains on track despite a rise in coronavirus infections, the Federal Reserve said on Wednesday, July 28,  in a new policy statement that remained upbeat and flagged ongoing talks around the eventual withdrawal of monetary policy support.

In a news conference following the release of the statement, Fed Chair Jerome Powell said the US job market still had “some ground to cover” before it would be time to pull back from the economic support the US central bank put in place in the spring of 2020 to battle the coronavirus pandemic’s economic shocks.

“I would want to see some strong job numbers” in coming months before reducing the $120 billion in monthly bond purchases the Fed continues to make, he told reporters.

But Powell also set aside, at least for now, the risk that the renewed spread of the coronavirus through its more infectious Delta variant would put the recovery at risk or throw the Fed off track as it plans an exit from crisis-era policies.

“It will have significant health consequences” in the areas of the country where outbreaks are intensifying, Powell said. But in the prior waves of coronavirus infections “there has tended to be less in the way of economic implications … It is not an unreasonable expectation” that would remain the case this time, he added.

The Fed’s policy statement, issued after the end of a two-day policy meeting, reflected that confidence.

“With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen,” the central bank said in the statement.

Looking past the quadrupling of daily U.S. coronavirus infections that has occurred since the Fed last met in June, the central bank indicated it still had faith that an ongoing vaccination drive would “reduce the effect of the public health crisis on the economy” and allow a robust reopening to proceed.

Fed policymakers, in a unanimous statement, also said they were moving ahead with discussions about when to reduce the central bank’s bond-buying program, a precursor to eventually raising interest rates