In the 2003-2004 region, the Fed pegged the short end, it can't help itself, but by August 2004 the short end was flexible again. If this was too short for too long, then we have a serious problem with having a Fed at all. I do not think the housing boom was caused by the Fed being behind schedule for a few extra months.
Macro and Musing makes the other case, you decide.
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