AWS Command Line: What "Outbound connections on 443 must be enabled" means?

Network Newbie here.

Background

I am trying to use the AWS Command Line utility to connect to my instances on the AWS cloud.

Problem

When I try a simple command such as...

aws ec2 describe-instances

I get...

Could not connect to the endpoint URL: "http://ift.tt/1ddTb97"

1. List item

Which is fine and dandy because according to the AWS Command Line User Manual I should take note of:

The AWS CLI makes API calls to services over HTTPS. Outbound connections on TCP port 443 must be enabled in order to perform calls.

But what that is suppose to mean in the first place? I find the above statement as clear as a glass of muddy water.

1) Should I go to the 'Security Group' of my instance and set inbound rules to 'HTTPS TCP 443 0.0.0.0/0'? (Doesn't work)

2) Or set outbound rules and set 'HTTPS TCP 443 0.0.0.0/0' ? (Doesn't work)

3) Does the above statement has anything to do with the 'Security Groups'?

4) If it doesn't has to then, what should I do in my machine in order to 'enable the port 443. That being said...

5) Should I install the AWS Command Line utility on my local machine or on my EC2 remote server?

I'd appreciate some guidance so I can start solving my problem.

Thanks in advance!