William Dudley, president of the Federal Reserve Bank of New York, delivered a strong defense on Monday, repeating his support for the Federal Reserve's continued asset purchases of $85 million a month. 

"After reviewing the efficacy and costs of this program, I have concluded that that efficacy has been as high or higher than I expected at the onset of the program and costs the same or lower," he explained.

As a result, the Fed's continued open-ended third round of quantitative easing program has far exceeded the NY Fed president's expectations.

In addition, Dudley noted that Europe's economic outlook "seems less bright" and also urged U.S. policymakers to loosen fiscal policies. 

The NY Fed president's remarks show central banker's frustration with the slow pace of economic recovery throughout the world.

Meanwhile, efforts to revive growth through monetary stimulus have been offset by budget cuts from fiscal woes, Dudley explained.

"The good news is that the peripheral countries have made substantial efforts to bring down their structural budget deficits," he said. 

Dudley added, "The household sector is far along in the deleveraging process, the housing sector is recovering, the banking system is healthier and credit conditions are easing, the corporate sector is highly profitable and awash in cash."