US borrowing costs hit 19-year high as Fed holds interest rates

US borrowing costs have hit a 19-year high as the Federal Reserve held interest rates steady, tightening financial conditions for households and businesses. Higher borrowing expenses typically feed through to consumer credit, corporate financing and refinancing costs, increasing the price of new loans and credit cards. Markets are watching for signs of whether inflation continues to cool enough for the Fed to cut rates, or whether longer “higher for longer” policy will keep pressure on funding.