Concerns that new Federal Reserve chairman Ben Bernanke will prove dovish are likely to prove unfounded. But some of his most widely quoted speeches suggest that he is relatively relaxed on the US’s bulging current account deficit and booming housing market.

There is little evidence from Mr Bernanke’s record as a Fed governor or past writing to suggest he will be be soft on inflation, assuming he wins Senate confirmation to replace Alan Greenspan. Mr Bernanke is an advocate of inflation targeting, and is likely to be intolerant of it either accelerating above or plunging below his preferred range.