By Jonnelle Marte

(Reuters) – The Federal Reserve may soon start to reduce the pace of its asset purchases if the economy continues to improve as expected, New York Federal Reserve Bank President John Williams said on Monday.

Williams stated that there had been “substantial additional progress” towards the Fed’s inflation goal and also “very good progress toward maximum employment” in remarks prepared for an Economic Club of New York virtual event. This was Williams referring to the $120 billion monthly threshold that policymakers have set for the Fed’s bond buying.

Williams stated that “Assuming I expect the economy to continue improving, it may be necessary for us to moderate the pace at which we purchase assets,” echoing the central bank policy statement issued last week.

Although some policymakers like Loretta Mester, President of the Cleveland Fed Bank, and Esther George from Kansas City Fed, believe that the tapering standard has been achieved, others have expressed their desire to continue job growth.

After last week’s meeting, Fed Chair Jerome Powell stated that there is only one decent monthly job report left to meet the tapering threshold. He will begin tapering in November.

Williams indicated that the Fed Chair Jerome Powell expects the economy will grow between 5.5% and 6% this year. He also anticipates inflation dropping to around 2% next.

It will take time before the U.S. can raise its interest rates to near zero. This is a warning about the uncertain outlook, as well the importance of job growth.

Williams indicated that the United States still has a way to go in reaching full employment. Over time, it will be clearer if we’ve reached sustained 2 percent inflation.