Kevin Warsh, in recent testimony, indicated that the Federal Reserve under his leadership would be prepared to respond aggressively to market crises. Warsh emphasized the use of the Fed's balance sheet in unusual and exigent circumstances, stating a preference for interest rates as the primary tool for monetary policy, but not ruling out balance sheet interventions during real crises. Warsh also addressed concerns about quantitative easing, asserting that it is not inherently inflationary, particularly when implemented during severe market downturns to provide necessary liquidity. This stance appears to contrast with his previous comments linking an expanded balance sheet to inflation, raising questions about his policy consistency.