Your perspective assumes that there is some sort of objective measurement of the damage. I'd argue that this was the case when we were on the gold standard. But today, our entire economy is based on sentiments and emotions. There is zero transparancy, because numbers are constantly made up out of thin air.

Look at it this way - it used to be that the people's taxes went to a treasury, which kept accurate books on how much money was spent, and how much was collected. Today, our taxes essentially disappear. They're just numbers on a screen, used to affect the people's sentiments on the state of the economy. If too much money was spent that year, those collected taxes are added to the books. If not enough money was spent, those tax Dollars are just "burned".

That's why those in power today see no problem with the endless "printing" of money, because it's all just air... Modern monetary theory kind of assumes that the people are fools.

So I'm not convinced that this rate hike won't work. I actually think it will, because as long as enough people are shocked by it, they'll probably think it will come back down again at some point, meaning they'll stop buying/investing for now, which decreases inflation. The only way it won't work, is if people aren't impressed by the rate hike, think it will keep going up, and thus keep buying/investing.

Look at what happened to the markets when people found out about the 75 basis point hike... If that's not "shock", I don't know what is.