After all, interest rates cannot be cut below zero. But as Mr Bernanke pointed out in a November 2002 speech, the central bank would have other options, notably targeting short-term bond yields. “The Fed could enforce these interest-rate ceilings by committing to make unlimited purchasers of securities up to two years from maturity at prices consistent with targeted yields”, Mr Bernanke said. If necessary, the Fed could target bonds at even longer maturities.

David Rosenberg, a well-respected economist at Merrill Lynch, thinks the current Fed chairman, Ben Bernanke, may introduce a “Bernanke put”, this time for the bond market.