Government borrowing costs hit a two-decade high as Treasury yields surge after Fed decision, signaling inflation doubts.

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US government borrowing costs have surged to a two-decade high following the latest Federal Reserve rate decision, signaling that investors are increasingly skeptical about the central bank's ability to contain inflation. The jump in Treasury yields reflects a belief that the Fed may need to maintain or even tighten monetary policy further, keeping borrowing costs elevated for longer. For financial markets, higher yields typically tighten conditions, reducing liquidity and curbing risk appetite. This environment is particularly challenging for speculative assets like cryptocurrencies, which often suffer when investors seek safer returns on bonds. Intraday volatility could spike as traders reassess positions in response to shifting yield expectations. The yield move underscores persistent inflation concerns, even as the Fed tries to anchor expectations. Crypto markets may face downward pressure if yields continue climbing, as higher alternative returns draw capital away from riskier bets.