There is so much leverage in the economy that an abrupt shift towards anything approaching Volker-level rates would mean a catastrophic level of defaults in all sectors. By keeping rates so low for so long what they've really done is paint themselves into a corner.

The best case I see is that they raise rates by 1-2 pct and accept a few years of elevated inflation followed by a gradual normalization towards a long term mean. I really don't believe hyperinflation is a big risk.