Federal Reserve Vice Chairman Stanley Fischer said U.S. monetary policy normalization is likely to be measured.

"A gradual and ongoing removal of accommodation seems likely both to maximize the prospects of a continued expansion in the U.S. economy and to mitigate the risk of undesirable spillovers abroad," Fischer said in remarks prepared for a Wednesday event hosted by the International Banking Research Network and the International Monetary Fund.

He explained that markets have had a "favorable reaction" to the central bank's policy decisions. Fischer said that market participants see rate hikes as a signal of "confidence in the underlying prospects for the U.S. economy that in turn has increased confidence in the global outlook: A strong U.S. economy is a major plus for the global economy."