First Thing: US government borrowing costs hit new high as US strikes resume on Iran

Borrowing costs for the US government have climbed to their highest level since two thousand seven, after the Federal Reserve held its key interest rate steady. Fed chair Kevin Warsh said the bank would 'not waver' in its commitment to combating rising prices. The decision rattled investors worried that the central bank may move too slowly to tame inflation amid renewed US-Iran tensions. The Guardian reports US inflation had cooled to three point five percent annually in June following a brief ceasefire between Washington and Tehran—but that ceasefire has since ended. Stock markets reacted sharply: the S and P five hundred fell one point five percent, the Dow Jones dropped two point two percent, and the tech-heavy Nasdaq was down one point seven percent.

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