Back to the Fed

The Fed has traction, always does by definition of a yield curve.  Take a look at the Dynamic yield curve, again.
  Look at the curve movement over the past year and there is unused elasticity at the short end.  The problem is that Fed trading does not follow the velocity frontier, other bloggers noting this as well.  This points us back to fixed frequency sampling inherent in minimum variance estimations.

There is always a short end if there is a recognized yield curve.  The short end, in hydraulic macro, is the band limit of production over the monetary field, the point where the curve hits the noise level.  The Feds problem is quantum, they  have one huge customer, the US Congress, which wants the Fed to fund long term for them.