US bond market is on the verge of a "major breakdown" that will boost government debt costs and hurt banks, Peter Schiff said.
That would also send benchmark mortgage rates soaring to 8%, a level unseen since 2000, according to him.
Bond yields move inversely to prices.
The Fed raised its benchmark rate this week by 25 basis points to a 22-year high, bringing the total increases since the spring of 2022 to a whopping 525 basis points.
Higher bond rates would also boost the government's debt costs, adding pressure on the country's already-stressed public finances, according Schiff.
Persons:
Peter Schiff, Schiff, Ray Dalio
Organizations:
Service, Pacific Asset Management, Federal Reserve, Fed
Locations:
Wall, Silicon, Treasuries