The Federal Reserve Chair Kevin Warsh and policymakers have two methods to influence interest rates without adjusting the federal funds target rate. First, Warsh has already removed forward-looking guidance from FOMC statements, which has led bond traders to push up long-term Treasury yields as inflation runs hot. Second, the Fed could shrink its balance sheet, which grew to nearly $9 trillion by March 2022 and currently stands at $6.75 trillion. Selling U.S. Treasury bonds would increase long-term yields and make lending costlier, similar to a traditional rate hike.