I think this is really good intuition on what the Fed effectively does. When it's really easy to teleport money from the future, all that money competes in the present for a limited supply of good. This causes inflation and reduces margins and can cause profitable endeavors to become non-profitable "hobbies."*

Increased interest rates suck up this money because now there is something better to do with that money. Why "Do Stuff" when the returns on doing stuff is less than the ultra high savings yield you are now being offered.

It's virtuous when the stuff being done actually is destructive due to easy access to capital (e.g. 100 Ramen shops driving each other into further and further debt) but it's also a ham-fisted solution. It disrupts long term planning, even relatively conservative ones like "buy government bonds", and also just punts the problem b/c it's reducing demand by... promising more money in the future.