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Easy. Increasing interest rates does the following:Increases the relative value of the USD relative to other currencies, making imports cheaper.Curbs asset prices, especially anything highly leveraged like real estate, and possibly stocks (assuming buying stocks on margin is still a thing).Reduces the value of existing bonds, but makes new issued bonds at the higher interest rates a more attractive investment, since I'd you can get a guaranteed 4% or more rate, lots of investors are going to avoid the headaches of real estate, and the risks of stocks (especially retirees). At higher interest rates, less borrowing occurs. Lending is highly inflationary because it artificially increases the money supply.