While the Federal Reserve's asset purchase program does pose potential problems when it comes time for the Fed to tighten monetary policy, the benefits of the Fed's so-called "quantitative easing" may outweigh the costs and risks, Boston Federal Reserve Bank President Eric Rosengren said Friday.

Without its large-scale asset purchases, the Fed would be much further away from its "dual mandate" goals on unemployment and inflation, Rosengren said. And that, in turn would mean even bigger budget deficits for the federal government.

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