Greg Robb — The Fed is dusting off a QE replacement, last used during World War II

MMT economists have been saying that the government acting through its central bank has this power as currency monopolist to manage the yield curve in addition to setting the policy rate, if it chooses to use it. 

What difference does this make? The 5 and 10 year rates serve as benchmarks for commercial lending. Since housing is such an integral part of the economy, mortgage rates are especially influential and it has been argued that central bank interest setting acts primarily through the housing channel. So flattening the yield curve would make a difference.

MarketWatch
The Fed is dusting off a QE replacement, last used during World War II

Greg Robb | Senior Economics Reporter