US Borrowing Costs Hit 19-Year High as Fed Holds Rates Steady

US government borrowing costs reached their highest level since 2007 after the Federal Reserve maintained its key interest rate at between 3.5 percent and 3.75 percent for the fifth consecutive meeting.

The yield on the 30-year Treasury bond rose by 14 basis points to nearly 5.24 percent, marking a 19-year high.

US stocks plummeted in response, with the S&P 500 closing down 1.5 percent, the Dow Jones industrial average dropping 2.2 percent, and the Nasdaq falling 1.7 percent.

Fed Chair Kevin Warsh emphasized that the central bank would 'not waver' from its commitment to tackling rising prices, despite some market expectations of a rate hike.