Federal Reserve kept rates unchanged, borrowing costs near 2-decade high
The Federal Reserve just kept its main interest rate steady for the fifth meeting in a row, and that's pushed US borrowing costs to their highest point in nearly two decades.
The yield on 30-year Treasury bonds jumped to nearly 5.24%.
Fed chair Kevin Warsh doubled down on the Fed's goal of keeping inflation at 2%, saying, "This Fed will not waver... Our credibility rests on performing our duties."
Wall Street slides, traders cut odds
Wall Street took a hit after the announcement: the S&P 500 dropped 1.5%, the Dow fell by 2.2%, and the Nasdaq slid by 1.7%.
With inflation bouncing around, thanks in part to rising oil prices and global tensions, traders now see a reduced chance of another rate hike in September.
Economists say bond yields might help with borrowing costs for now, but inflation is still a big worry going forward.