Much has been said about the Federal Reserve's bloated balance sheet, and debate has ensued about how it will be resolved, but Federal Reserve Bank of Boston President & Chief Executive Officer Eric S. Rosengren Friday defended the large-scale asset purchase program.

"With respect to monetary policy, the large-scale asset purchase program improves the broader fiscal outlook by lowering interest rates and providing more economic growth," Rosengren said during a panel at the U.S. Monetary Policy Forum, according to prepared text released by the Fed. "In addition, it returns the economy to full employment and an inflation rate at the 2 percent target more quickly than would have occurred in the absence of such actions. We do well to also consider these benefits, and the costs of inaction, when evaluating policy."

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