Cost of US government borrowing hits 19-year high

On July 29, 2026, the Federal Reserve kept its key interest rate at 3.5%–3.75%, though three officials wanted a raise. Investors sold off long-term US bonds, pushing borrowing costs to their highest since 2007. Stock prices fell the next day: S&P 500 down 1.5%, Dow down 2.2%, Nasdaq down 1.7%. The bond market is doing what the Fed chose not to.