Federal Reserve Vice Chairman Stanley Fischer said the case for removing accommodation is "quite strong" while interest rates will plateau at a level that is lower than normal.
Fischer, a voting member of the Fed's policy-setting committee, spoke in Santiago, Chile at the annual conference of the Central Bank of Chile on U.S. monetary policy and the global economy.
He expects U.S. rates to rise gradually, and said the Fed is close to achieving its dual mandate. The Fed's goal is to return to 2 percent longer-run inflation and to maximize employment.
Earlier this month, the Fed voted to stand pat and refrain from raising the federal funds rate as it seeks to navigate the closely-watched process of normalizing rates.
The target range for the federal funds rate currently stands at 0.25 percent to 0.50 percent. The implied odds of a rate hike stands at 71.5 percent, according to the CME Group FedWatch.
Fischer said he is optimistic the effect on raising rates "will be manageable" abroad, adding that a stronger U.S. economy should help foreign economies.