Gate News report: On March 26, Federal Reserve chair nominee Kevin Warsh hopes to significantly reduce the Federal Reserve's $6.6 trillion balance sheet. Darrell Duffie, a Stanford Graduate School of Business professor and longtime Federal Reserve adviser, points out in a new paper that Warsh may need more than one term to complete this task. Duffie states that if the Federal Reserve wants to significantly reduce its influence in financial markets without causing serious stress, reforms are needed, including a comprehensive overhaul of bank liquidity requirements and a redesign of the payment system. Once Warsh is confirmed by the U.S. Senate, he could implement some reforms immediately with colleague support. However, Duffie notes that other reforms could take up to five years, meaning the related work would extend beyond Warsh's four-year term as chair.