When Volker did this a long time ago, he managed to expand the money supply dramatically, to monetize Carter's and Nixon's debt while increasing interest rates dramatically to cut off the formation of new debt. That works with fixed rate debt, but there is a lot of variable rate stuff out there now and so that option is foreclosed. Either liquidate debt with massive inflation or widespread default - those are the choices.
You're probably right but in no way would it be because the people at the Fed are serious, focused, goal oriented, and clever. Like, hey guy these are gov't employees we're talking about. The reason they probably won't do anything is because there probably won't be any need for action. Then again, they may just up and decide to be irratic, fad driven, and irresponsible like they were last December. That would be more true to form actually....
As for all the hype and spin the pop meme w/ the left is that the econ's just roaring along and really really needs to be kept in check it's so hot. Kind of like global warming. They all say it's true but nobody ever takes it seriously enough to spend their own money on it.
The Fed has been playing this game for years now. They truly rely on suggestions of rate hikes to do all the hard work for them. To actually do it will as you said cause enormous damage.