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US borrowing costs hit 16-year high as strikes on Iran resume

From The Guardian · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • US government borrowing costs reached their highest level since 2007 after the Federal Reserve held interest rates steady, fueling inflation concerns.
  • The US military launched new strikes on Iranian targets in response to attacks in Jordan, increasing fears of wider conflict and sending oil prices soaring.
  • Dr. Anthony Fauci invoked the Fifth Amendment during a Senate hearing on Covid-19 origins, accusing Senator Rand Paul of an "unhinged obsession."

US government borrowing costs have surged to their highest point since 2007, following the Federal Reserve's decision to maintain its key interest rate. This move has intensified worries that the central bank might not act swiftly enough to curb rising inflation. Kevin Warsh, a former Fed governor, asserted that the bank "would not waver" in its fight against increasing prices.

the bank would “not waver” in its commitment to tackling rising prices.

— Kevin WarshA former Fed governor commented on the Federal Reserve's stance on inflation.

Investors reacted negatively to the decision to hold rates steady, expressing concerns about the US economy's capacity to withstand higher inflation, exacerbated by escalating tensions with Iran. While inflation had briefly cooled to an annual rate of 3.5% in June following a temporary ceasefire, that pause has now ended.

In parallel, the US military has initiated fresh strikes against Iranian targets in retaliation for Tehran's assault on American forces in Jordan. This escalation heightens the risk of a full-blown conflict in the region. The strikes occurred hours after President Donald Trump vowed severe retaliation for Iran's targeting of a base housing US troops in Jordan, following a period of reduced hostilities.

hit Iran “very hard”

— Donald TrumpThe US President vowed retaliation after Iran's attack on US troops.

US Central Command reported striking "dozens" of targets belonging to Iran's Revolutionary Guards Corps within a two-hour span. This barrage followed a joint US-Saudi operation against Iran-backed militias in Iraq, which resulted in the deaths of at least 20 fighters and six Iranian advisers. The renewed hostilities immediately caused oil prices to spike, with Brent crude jumping 7.3% to over $88 a barrel.

dozens” of targets belonging to Iran’s Revolutionary Guards Corp.

— US Central CommandDescribing the scale of the strikes launched against Iranian targets.

Meanwhile, Dr. Anthony Fauci refused to answer questions during a high-profile Senate hearing concerning the origins of Covid-19. He accused the Republican senator leading the inquiry, Rand Paul, of harboring an "unhinged obsession" with him. Fauci suggested Paul's aim was to "embarrass and intimidate me, and ultimately landing me behind bars." Senator Gary Peters criticized the hearing as detrimental to science and a distraction from current public health issues, such as record-high outbreaks of the cyclospora parasite and measles.

served as a senior adviser to Donald Trump and Joe Biden during the pandemic.

— Dr Anthony FauciHis role during the pandemic was noted during the Senate hearing.
DistantNews Editorial

Originally published by The Guardian in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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