The Federal Reserve expected the current improvement in U.S. inflation and employment and, while monetary policy remains accommodative, it is headed on the right path in removing that stimulus, Fed Vice Chair Stanley Fischer said on Thursday.

The Fed expected "to be moving closer to the 2-percent inflation rate and that the labor market would continue to strengthen. If those two things happen we'll be on the (policy) path that we more or less expected," he said on Bloomberg radio.

Monetary policy is "in the land of accommodative," Fischer said, adding: "If (inflation) is significantly above (target) you begin to worry and you begin to act."