US government borrowing costs hit their highest level since 2007 as the Federal Reserve held rates steady with inflation at 3.5 percent in June. Markets declined with the S&P 500 down 1.5 percent, Dow Jones off 2.2 percent, and Nasdaq down 1.7 percent. Reports also describe US strikes on Iranian targets following an attack on US forces in Jordan and the collapse of a brief pause in violence.