US borrowing costs hit 19-year high as Fed holds interest rates

Bank's chair pledges to keep up fight against inflation but decision brings fears of a failure to keep pace

• Business live - latest updates

US government borrowing costs have hit their highest level since 2007 after the Federal Reserve voted to hold its key interest rate steady, feeding fears that the central bank may not move fast enough to tame a rise in inflation.

The yield - or interest rate - on the 30-year US Treasury bond rose 14 basis points to nearly 5.24%, a 19-year high, after the Fed announced its decision to hold its main rate at between 3.5% and 3.75% for the fifth meeting in a row.