Headline: UNCAPTIONED: US Borrowing Costs Hit Fresh Highs On Inflation Fears
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US Borrowing Costs Hit Fresh Highs On Inflation Fears. US borrowing costs have climbed to their highest level in more than a year as rising oil prices fuel concerns about inflation. The effective interest rate on 10-year government borrowing rose to 4.79%, its highest since January 2025, after renewed strikes in the Middle East pushed oil above $92 a barrel. Higher government borrowing costs can also feed through to mortgages, car loans and credit cards. The increase comes amid growing expectations that the Federal Reserve could raise interest rates later this month. Federal Reserve Governor Michael Barr said inflation had remained too high and policymakers should act decisively if price pressures fail to ease. US inflation stood at 3.4% in July, well above the Fed's 2% target, while interest rates have remained between 3.5% and 3.75% for several months.
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