Warsh talked about building the Fed's information systems, saying the Fed can learn more from markets, particularly the bond market, than the bond market can learn from the Fed. For a number of years, Warsh has argued that the Fed needs to reduce the size of its balance sheet. To illustrate this, we're showing a couple of charts from the Federal Reserve database on the history of the Fed's balance sheet. When he joined, the Fed balance sheet stood at around $0.78 trillion (US$780 billion), the lowest level it would reach over the period we're covering. During the financial crisis, in order to recapitalise US banks, the balance sheet expanded rapidly from $0.78 trillion to $2 trillion.