As the newly confirmed Federal Reserve Chair, Kevin Warsh has made shrinking the central bank’s massive balance sheet the centerpiece of his agenda. While headlines sometimes frame this as a bold plan to tackle America’s runaway federal deficits, the reality is more nuanced—and far less magical. Warsh is not proposing to directly “fix” the deficit. That job belongs to Congress and the White House through spending and tax decisions. Instead, his monetary strategy aims to en