Federal Reserve Vice Chair Richard Clarida said on Tuesday that the central bank has nearly accomplished its employment objective and is ready to begin decreasing its bond-buying programme, confirming predictions that the central bank would begin removing its crisis-era stimulus as soon as next month.

Clarida said in prepared remarks to the Institute of International Finance virtual annual meeting that "I myself believe that the 'substantial further progress' standard has more than been met with regard to our price-stability mandate and has all but been met with regard to our employment mandate,"

Clarida's optimistic outlook mirrors that of his boss, Fed Chair Jerome Powell, who earlier stated that all he needed was a "decent" September U.S. employment report to begin tapering asset purchases in November.

Fed's Clarida talks about the new policy framework

The Labor Department's September jobs report came in at 194,000, well below analyst expectations, but upward revisions to prior months mean the economy has now regained half of the jobs deficit it had in December when the Fed set a "substantial further progress" hurdle on jobs and inflation in order to begin tapering. Fed officials are nearly unanimous in their belief that higher-than-expected inflation has reached their target.

Although the pandemic continues to impact employment and participation, the economy has recovered, and "conditions in the labor market have continued to improve," Clarida added.

Additional Quotes From Clarida

This year's US GDP increase might be the fastest since 1983

The pace of asset purchases will not be used to suggest when interest rates will be raised

Stagflation is not my baseline case. Right now, there is a hint of stagflation. I don't believe stagflation will be the trend going forward.

The economy and the job market continue to be influenced by coronavirus.

If the economy continues on track, a gradual tapering of asset purchases that ends in the middle of next year may be necessary soon.