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The economy that Volcker hiked into wasn't nearly as leveraged (because the debt had been inflated away / soft defaulted upon). A small rate increase on a lot of debt vacuums up as much money as a large increase on a small amount of debt. However, the duration on most household/corporate debt at the moment is such that it hasn't felt the sting of rate increases yet. As usual, it's complicated.

Too early to tell IMO. The fact that inflation is going up again tells me they may have played too safe with the only blunt instrument that they have

Pedantry and HN. Name a better combo.

But yea I agree with ya on the 2nd half.