By Reuters Staff 2 Min Read FILE PHOTO: Chairman of the Federal Reserve Jerome Powell listens during a Senate Banking Committee hearing on "The Quarterly CARES Act Report to Congress" on Capitol Hill in Washington, U.S., December 1, 2020. Susan Walsh/Pool via REUTERS/File Photo WASHINGTON (Reuters) - The Federal Reserve will reduce its monthly bond purchases before it commits to an interest rate increase, Fed Chair Jerome Powell said on Wednesday, clarifying the order of monetary policy changes that are still months if not years in the future. The Fed is currently buying $120 billion a month in government-issued and government-backed securities, and has pledged to continue doing that until the economy is more fully recovered.