Ross Gerber, Co-founder of the investment firm Gerber Kawasaki, criticized the administration’s policies on Tuesday for igniting inflationary pressures and turmoil in the U.S. bond market.
In a post on X, Gerber said, “We all have to pay the price, one way or another, for the decisions of our government. Fortunately the election is around the corner.” Notably, the U.S. midterms are due in November 2026.
Bond Yields On Rise
Gerber’s comments came in response to a post from The Kobeissi Letter, which stated the “U.S. bond market is in a complete meltdown,” when investor attention remains focused on artificial intelligence and the Iran conflict.
The 30-year Treasury yields advanced to above 5.00% while 10-year yields are hovering near the key 4.50% level, which resulted in President Trump’s “90-day tariff pause” in April 2025, the letter noted.
Long-term Treasury yields have now climbed above levels seen before the Fed’s rate cuts, underscoring the central bank’s limited control over the long end of the yield curve, according to the post.
As concerns about rising yields mount, market commentator Peter Schiff has previously warned that the jump from 5% to 6% in 30-year Treasury yields could occur much faster than prior increases, potentially triggering an economic crisis.
Mortgage Rate Fears Resurface
The rise in Treasury yields has renewed concerns about borrowing costs across the economy. The Letter warned that U.S. mortgage rates could climb back above 7.00% this year.
According to Freddie Mac’s latest Primary Mortgage Market Survey, the average rate on a 30-year fixed mortgage ticked up to 6.37% as of May 7 from 6.30% recorded last week, but was down from 6.76% in the year-ago week. The 15-year fixed-rate mortgage also rose to 5.72% from 5.64% in the previous week but slid from 5.89% in the year-ago week.
The increase in rates will make homeownership less attractive for first-time buyers, discouraging home purchases.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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