Newly confirmed Chair Kevin Warsh's call for regime change echoes the 1979 Volcker pivot documented in FOMC transcripts, where policy pivoted from interest-rate targeting to reserve aggregates amid double-digit inflation. Primary Federal Reserve historical releases show this approach contracted the balance sheet far more aggressively than post-2008 operations, directly influencing term premia and credit allocation. Warsh's emphasis on the balance sheet tool over pure rate adjustments, as stated in his April 21 hearing, diverges from Powell-era forward guidance in FOMC minutes that prioritized employment data over money-supply metrics. One perspective, drawn from Bank for International Settlements working papers on QE spillovers, holds that shrinking the $6.8 trillion portfolio could restore price signals distorted since 2008 by reducing excess reserves and curbing asset inflation. A counter-view, reflected in Treasury International Capital data on foreign holdings, warns that rapid QT risks amplifying dollar strength and tightening financial conditions for emerging markets already facing energy price volatility from Strait of Hormuz disruptions. The original coverage underplays how Warsh's framework might interact with post-2020 M2 expansion—approximately 29 percent of which traces to pandemic-era operations per Federal Reserve H.6 releases—potentially requiring coordinated fiscal restraint absent in prior tightening cycles. Markets may reprice duration risk faster under explicit balance-sheet rules, while inflation expectations anchored to the 2 percent target face renewed pressure from oil and fertilizer channels. Multiple paths remain open depending on FOMC voting dynamics and external supply shocks.