US borrowing costs hit 19-year high as Fed defies inflation fears

US borrowing costs have reached a 19-year high, reflecting investor concerns despite the Federal Reserve's decision to maintain interest rates amid fears of inflation driven by potential geopolitical tensions. The Fed's stance comes amid worries that a Trump-led war with Iran could trigger significant price increases, yet they opted to hold rates steady. This decision underscores the complex balance the Fed must navigate between controlling inflation and managing economic stability amidst global uncertainties.