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From an extension of the word bazoo(“mouth, boastful talk”), which ultimately probably stems from Dutchbazuin(“trumpet”). In the finance sense first used by policymakers during the European debt crisis (2010).
2012 June 21, Matthew O'Brien, “Why the Euro Crisis Will Never End in 1 Chart”, in The Atlantic:
Suppose the EFSF buys some bonds. That will push down yields for awhile. But what happens when the money starts to run out? Yields will go back up. A firebreak/firewall/bazooka needs unlimited funds to work.
2022 August 24, Thomas Hale, Cheng Leng, Hudson Lockett, “Investors price in $130bn loss on China developers’ dollar bonds”, in Financial Times:
“I don’t think [policymakers] realise it’s not enough,” said a veteran fixed-income investor in Hong Kong. “You need some big bazooka action to improve sentiment as a whole.”