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Axios

Borrowing costs are surging amid Iran war

Iran United States Inflation US Federal Reserve

Data: Federal Reserve; Chart: Neil Irwin/Axios

The Iran war is sending longer-term borrowing costs surging amid prospects for higher inflation, fewer Federal Reserve rate cuts and more federal borrowing.

Why it matters: Higher rates create new pressure for an already-faltering housing sector, make the U.S. government's fiscal challenges worse and could weigh on business investment and consumers alike.

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