Because when interest rates go up, we pay more on debt and less on what we need, and if we're not buying, the workers who provide what we need get fired. Plus ⬆️ rates make borrowing harder for new businesses harder so jobs go ⬇️
1. CBO: if the govt spends money on necessary programs, the economy will slow down because we assume the Fed will raise rates.
2. Fed: We must raise rates when unemployment goes below 5% and/or the govt deficit spends because it will cause inflation!
We're seeing big deficit spending and record low unemployment and ...
BELOW TARGET INFLATION.
So the Fed isn't raising rates to slow down the economy (may even cut rates), which is THE justification against govt spending.