Of course, Volcker would (and did) rates rates. And Oil at $150 would certainly be inflationary. But the Fed has a dual mandate on inflation and employment, and a high oil price would have the same effect as a tax hike, slowing down the US economy. Stagnation, in other words. And would the end of zero rates send the economy and markets back in a tailspin, just what Bernanke fears..?