Former Jeffrey Epstein assistant tells House Oversight Committee he abused her for years

Former Jeffrey Epstein assistant tells House Oversight Committee he abused her for years
Former Jeffrey Epstein assistant tells House Oversight Committee he abused her for years
Jeffrey Epstein in Cambridge, MA on 9/8/04. (Photo by Rick Friedman/Rick Friedman Photography/Corbis via Getty Images)

(NEW YORK) — Sarah Kellen, a longtime personal assistant to convicted sex offender Jeffrey Epstein, told the House Oversight Committee on Thursday that she was “sexually and psychologically abused” by the late financier for over a decade, according to a copy of her prepared opening statement obtained by ABC News.

“He groomed me, sexually and psychologically abused me, controlled me, manipulated me, dominated me, and gaslit me, until I could no longer tell which thoughts were mine, and which were his,” the statement said.

The closed-door session was part of the panel’s ongoing inquiry into the federal government’s handling of investigations into the late sex offender.

Kellen, 47, was previously a subject of criminal investigations but has never been charged — due, in part, to her own allegations of persistent sexual abuse at the hands of the disgraced financier, according to court documents and records released earlier this year by the Justice Department.

Kellen, in her statement, said she was recruited for the job as Epstein’s assistant by a co-worker at a hotel in Hawaii, where she had gone to live after getting married at 17 years old. She claimed that after a divorce and ex-communication from her church, she was completely alone and “a perfect target” for Epstein.

“I was 21 years old, far from where I grew up, stuck on an island in the middle of nowhere, with no college degree, no family, no friends, no money, and nowhere to live,” she said.

Her job with Epstein, she said, began as a period of training where she traveled with him on his private jet to his homes in the U.S. Virgin Islands, Florida and New York, where she says she was “surrounded by unimaginable luxury.”

“After months of unpaid labor, he instructed me to draw him a bath on his island, then ordered me to undress and get in with him, and he said, ‘The job is yours. Now you just have to keep it,'” she said in the statement. “He then pulled me onto his bed and made clear what ‘keeping the job’ required. Only after I submitted to his sexual abuse did the paychecks begin.”

Kellen told the committee that Epstein’s abuse happened on a “weekly basis” and was at times violent, including an incident in Palm Beach where she says he violently choked and raped her.

“I was being paid in part to be raped. I was on call to him every hour of every day,” her statement said.

Kellen said she continues to suffer from depression, anxiety and PTSD as a result of Epstein’s abuse. 

Kellen was one of four women named as potential co-conspirators in the non-prosecution agreement reached in 2007 between Epstein and federal prosecutors in Miami.. She told the committee that she was completely in the dark about the agreement and had no idea her name was in it until it became public a few years later.

“No one from law enforcement ever spoke with me, ever heard my side, ever asked me a single question. I did not even know my name was in that agreement until after it had been signed and released to the public. The federal government of the United States branded me a criminal in a secret deal with my own abuser, without ever once speaking to me,” the statement said.  

Anticipating questioning from committee members about why she stayed with Epstein — even after he went to jail for a crime involving an underage girl — she explained that she felt she had “nowhere else to go.”

“I had no money, no family, no education, and no sense that I deserved any better,” her statement said.

She also noted that Epstein’s connections to the “highest echelons” of society made her fearful of defying him.

“He knew everyone in the fashion industry, academics, finance, government, powerful world leaders, dictators, and everyone in between,” her statement said. “From the beginning, he showed me that he was more powerful than basically anyone in the world.”

“Jeffrey was able to fool and manipulate the brightest minds in the world; us victims didn’t stand a chance,” the statement said. “I was a high school dropout from North Carolina. I was a silent body in a chair beside men who started and ended wars. I understood, completely, that if Jeffrey could walk into those rooms, he could walk into any room in the entire world. He could find me anywhere on earth.”

Kellen’s appearance at the Capitol comes as the committee ramps up for a busy stretch of its investigation, which was officially launched in February of last year. Other notable witnesses scheduled in the coming months include Epstein’s longtime executive assistant Leslie Groff, former U.S. Attorney General Pam Bondi, former Goldman Sachs chief counsel Kathryn Ruemmler, and billionaires Bill Gates and Leon Black.

The committee’s chairman, Rep. James Comer (R-Ky.), has indicated that a report on its findings will be produced before the end of the year. 

Following Epstein’s death in custody in July 2019, federal prosecutors in New York investigating possible collaborators engaged in discussions with Kellen and her attorneys that spanned more than a year. Documents released by the DOJ earlier this year included prosecutors’ internal assessments of a potential case against Kellen and emails from her attorneys trying to dissuade the government from filing charges.

“We feel that given [Kellen’s] abuse, and given the fact that we see her basically as a cog in Epstein’s wheel, acting entirely at his direction and doing what she did at a time that she herself was a very vulnerable victim, a [non-prosecution] would be the appropriate disposition,” an attorney for Kellen wrote in the spring of 2020. 

According to DOJ records, the government did not dispute that Kellen “was herself a victim of abuse by Epstein,” noting that her account was consistent with others who worked for Epstein and allegedly experienced sexual exploitation.

Prosecutors detailed in a proposed “statement of facts” sent to Kellen’s attorneys in late 2020 that several “minor victims reported to federal agents that Epstein paid them for sexualized massages while they were underage girls, including during massages that [Kellen] scheduled.”

Kellen conceded that Epstein directed her to schedule his daily massages in the early 2000s when he was staying in his Palm Beach, Florida, residence, according to the DOJ records. She claimed she was provided a directory of names and instructed on who to call, and denied having knowledge that some who came to the house were underage. 

She told prosecutors she viewed the “masseuses as her peers — i.e. young adults in their early 20s — and it never [crossed] her mind that any of them were minors,” government lawyers wrote in a December 2019 memo summarizing their investigation for Geoffrey Berman, then the top federal prosecutor in New York.

Kellen said she “only learned that Epstein was sexually abusing minors when news articles started coming out about it” in the mid-2000s, according to the records. “She recalled being shocked, angry, and disappointed. She was particularly angry with Epstein for manipulating her to help orchestrate the abuse of other women,” the records said.

Federal prosecutors ultimately decided against charging Kellen, though the internal deliberations that led to that outcome are unclear. Much of the legal analysis in the prosecution memos remains redacted in the publicly available versions of the DOJ records.  

Epstein’s former associate Ghislaine Maxwell remains the only other person charged in connection with Epstein’s crimes. She is serving a 20-year sentence in a federal prison camp in Texas. Maxwell is presently seeking to have her conviction vacated or her sentence reduced.

Kellen — who has largely avoided public comment surrounding the Epstein investigation — told a reporter from a British paper who approached her on the street in New York in 2020 that she was “raped and abused weekly.”

“I have been made out to be such a monster — but it’s not true. I’m a victim of Jeffrey Epstein,” Kellen said, according to the U.K. Sun report.

An attorney who represented Kellen during discussions with federal prosecutors did not immediately respond to a request for comment ahead of Kellen’s appearance in Washington, D.C.

Copyright © 2026, ABC Audio. All rights reserved.

‘Saturday Night Live’ releases bonus Paul McCartney performances

‘Saturday Night Live’ releases bonus Paul McCartney performances
‘Saturday Night Live’ releases bonus Paul McCartney performances
‘Saturday Night Live’ musical guest Paul McCartney performs “Days We Left Behind” on May 16, 2026 — (Photo by: Lloyd Bishop/NBC)

Saturday Night Live has just released two bonus Paul McCartney performances that didn’t make it on air when he was the musical guest on the show’s May 16 season finale.

During the show, McCartney performed three tracks: The Boys of Dungeon Lane single “Days We Left Behind,” the classic Wings track “Band on the Run” and the solo single “Coming Up.”

But the SNL audience was apparently treated to more, and now fans at home are getting a look at McCartney’s performances of The Beatles classics “Help!” and “Drive My Car.” “Help!” featured a cameo by the night’s host, Will Ferrell, who added cowbell to the song.

Both performances featured Red Hot Chili Peppers’ Chad Smith behind the drum kit and singer Ingrid Michaelson on backing vocals. You can also see the cast of the show dancing along on the side of the stage.

McCartney’s SNL appearance came ahead of the release of his new solo album, The Boys of Dungeon Lane, which is out May 29.


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Criminal case against former assistant principal over shooting of teacher by student dismissed

Criminal case against former assistant principal over shooting of teacher by student dismissed
Criminal case against former assistant principal over shooting of teacher by student dismissed
Abigail Zwerner shares a moment with her mother Julie Zwerner after a verdict was reached in her lawsuit against the assistant principal, Ebony Parker, of Richneck Elementary School during proceedings at Newport News Circuit Court on Thursday, Nov. 6, 2025, in Newport News, Virginia. (Kendall Warner/The Virginian-Pilot/Tribune News Service via Getty Images)

(NEWPORT NEWS, Va.) — A Virginia judge has granted a defense motion to dismiss the criminal charges against a former assistant principal stemming from the 2023 shooting of a teacher by a 6-year-old student.

Ebony Parker was charged with eight counts of felony child abuse with disregard for life in connection with the January 2023 shooting at Richneck Elementary School in Newport News — one count for each bullet that was unspent in the gun, according to the Newport News Commonwealth’s Attorney’s Office.

“The court is of the legal opinion that this is not a crime,” Circuit Court Judge Rebecca Robinson said Thursday, following two days of testimony in the criminal trial.

“What happened that day was awful, that’s agreed upon by all,” the judge later said.

Parker had her head bent over and appeared to be sobbing after the judge dismissed the case.

Prosecutors in the criminal trial alleged that Parker failed to respond and follow school protocol after several staffers raised concerns that the student, identified in the trial as JT, had a gun. The Commonwealth rested on Wednesday after two days of calling witnesses.

Defense attorney Curtis Rogers argued before the judge Thursday morning that Parker may have had a “lapse of judgment” that day, but she didn’t act criminally and there was “no willful admission on her part to put these children in harm.”

“Nobody acted as if there was an actual firearm. Not following school policy doesn’t result in a criminal allegation,” Rogers said. “There are acts that should have been done, definitely in hindsight.”

Deputy Commonwealth Attorney Josh Jenkins argued that Parker knew of the danger in the school that day.

“There were multiple warnings she received from multiple people that there was an armed student,” he said.

“Just the mere fact that a possible weapon is on campus should have triggered the response defined in the crisis management plan, yet it did not,” he said.

Parker pleaded not guilty to all charges.

The dismissal of the criminal trial comes after a jury in a civil trial found that Parker acted with gross negligence in the shooting and awarded the injured teacher, Abby Zwerner, $10 million in damages.

Zwerner’s attorneys said Thursday’s decision by the judge means Newport News can no longer use the criminal charges against Parker to “deny insurance coverage” in her civil case.

“One of the many obstacles the City of Newport News placed in Abby Zwerner’s path to justice was their argument they could deny insurance coverage in our civil case because of possible criminal conduct,” Zwerner’s attorneys said in a joint statement Thursday. “Today that is no longer an excuse that the City can hide behind.”

“This was always the Commonwealth’s criminal case — not Abby’s civil case. Abby complied with the subpoena requiring her testimony once again, despite the emotional toll of repeatedly reliving this tragedy,” the statement continued. “From the beginning, our focus has remained on obtaining justice in civil court for the preventable failures that led to Abby being shot. A Newport News jury has already spoken, returning a $10 million verdict in Abby’s favor.”

Zwerner, the first witness in the trial, testified that she had told Parker prior to the shooting in her classroom that JT “seemed to be off” that day and “in a violent mood.” She said another staffer, reading specialist Amy Kovac, alerted her that JT told other students he had brought a gun to school, and that Kovac reported that to the administration.

Zwerner said that in hindsight, she could have separated JT from the other students and confirmed that she was responsible for the safety of her students. Though she said her understanding that a crisis or emergency needed to be brought to the attention of the administration, and that she trusted her colleagues.

The bullet went through Zwerner’s left hand, which she had lifted, and then into her chest. She was initially hospitalized with life-threatening injuries, police said.

Zwerner and Parker both resigned following the shooting.  

The student brought the gun from home, police said. His mother, Deja Taylor, was sentenced to two years in state prison after pleading guilty to child neglect in connection with the shooting. She also pleaded guilty to using marijuana while in possession of a firearm and making a false statement about her drug use during the purchase of the firearm used in the shooting and was sentenced to 21 months in federal prison.

She was released from state custody on May 13 and transitioned to community supervision, according to online Virginia Department of Corrections records.

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‘Emily in Paris’ to end with upcoming season 6

‘Emily in Paris’ to end with upcoming season 6
‘Emily in Paris’ to end with upcoming season 6
Lily Collins on set of the sixth and final season of ‘Emily in Paris.’ (Giulia Parmigiani/Netflix)

Au revoir, Emily in Paris.

Netflix has announced that the popular romance series will end after its upcoming season 6. The sixth and final season has just started production in Greece.

Lily Collins once again stars as the titular American marketing executive who moved overseas for work. She shared a video message with fans of Emily in Paris after the news broke that the show was coming to an end.

“After six unforgettable years of playing Emily Cooper, I’m here to share that this upcoming sixth season will be our final. Season 6 will bring you everything you love about the show and serve as the final chapter in Emily’s adventure of a lifetime,” Collins said in the video. “Our entire cast and crew are pouring our hearts into making this a fantastic farewell season, which we’re now filming. I can’t wait for all of the magic ahead, and to celebrate our final season with you in the most chic way yet. We’re so incredibly grateful and we love you all. A bientot!”

The video video shows off many of the series’ stars, including Philippine Leroy-Beaulieu, Ashley Park, Lucas Bravo, Lucien Laviscount, Samuel Arnold, Bruno Gouery, William Abadie and Eugenio Franceschini.

Darren Star created the show, which he also executive produces and writes for.

“Making Emily in Paris with this extraordinary cast and crew has been the trip of a lifetime. As we embark on the final season, I am so grateful to Netflix, Paramount, and, most importantly, the fans who have taken this incredible journey with us,” Star said. “We can’t wait to share this last chapter with you. Thank you for letting us be a part of your lives, inspiring your dreams of travel and your love of Paris. We will always have Emily in Paris!” 

Copyright © 2026, ABC Audio. All rights reserved.

Queen Latifah’s excited for American Music Awards, Rock and Roll Hall of Fame induction

Queen Latifah’s excited for American Music Awards, Rock and Roll Hall of Fame induction
Queen Latifah’s excited for American Music Awards, Rock and Roll Hall of Fame induction
Queen Latifah speaks during CinemaCon 2026 – Walt Disney Studios Invites you to its 2026 presentation highlighting its upcoming release schedule at The Dolby Colosseum at Caesars Palace during CinemaCon, the official convention of Cinema United, on April 16, 2026, in Las Vegas, Nevada. (Photo by David Becker/Getty Images for CinemaCon)

Queen Latifah is excited about two major events: her induction into the Rock & Roll Hall of Fame and hosting the American Music Awards.

Speaking to The Hollywood Reporter, she said the Hall of Fame honor feels more meaningful with every call she gets.

“I’m excited about it, and I’m getting more excited because there’s so many different family members and friends who’ve heard about it that are calling from all over the place,” she said. “I always know when it’s something different when I get calls from every direction.”

Queen added that the recognition is more than a personal achievement.

“It’s not just a small thing that means something to me. It really means something to a lot of different people,” she said. “I’m just fortunate that I’m in there.”

Queen is also looking forward to returning as host of the AMAs, 21 years after co-hosting the 1995 ceremony. She said she’s eager to watch the performances, noting, “Out of the millions of artists in the world, we are the ones that are going to have this stage and be able to perform in front of the world. I know they’re all going to try to knock it out of the park. I want to see what tricks they’ve got up their sleeves and who’s just in the zone.”

Queen also enjoys watching younger artists learn from veteran performers.

“I like to see the younger artists watch the artists who’ve been around the block a few times do it,” she said. “There’s a certain comfort level when you’ve been rocking shows like this for a while. … You get to take a little tidbit here and there that you can keep and use for yourself and make sure you’re one of these longevity artists 30 years from now doing the same thing.”

The American Music Awards air live on CBS and stream on Paramount+ May 25 at 7 p.m. CT. 

Copyright © 2026, ABC Audio. All rights reserved.

Jelly Roll wants you to ‘Rise Up’ for the Stanley Cup

Jelly Roll wants you to ‘Rise Up’ for the Stanley Cup
Jelly Roll wants you to ‘Rise Up’ for the Stanley Cup
Jelly Roll’s “Rise Up” (Amazon Music/National Hockey League)

Jelly Roll is supplying the soundtrack for the 2026 Stanley Cup Playoffs.

His Amazon Music Original “Rise Up” is the official theme song of the National Hockey League’s annual fight to the finish, which started in April and will go through June. 

“This song was written for the guys grinding every night for the Cup,” Jelly says. “This isn’t just the theme song of the NHL Playoffs. This is their song. It crawls over your skin, that dirty, swampy, nasty, distorted rock and roll.” 

The “Rise Up” music video debuted during the first game of the Western Conference Final, featuring Jelly Roll, NHL highlights and the coveted Stanley Cup itself.

Watch for a documentary short coming in June that features the “Save Me” hitmaker alongside Jack Eichel of the Vegas Golden Knights and Seth Jarvis of the Carolina Hurricanes. 

Copyright © 2026, ABC Audio. All rights reserved.

On This Day, May 21, 1979: Elton John becomes first western act to play U.S.S.R

On This Day, May 21, 1979: Elton John becomes first western act to play U.S.S.R
On This Day, May 21, 1979: Elton John becomes first western act to play U.S.S.R

On This Day, May 21, 1979…

Elton John became the first western act to play the former U.S.S.R., when he kicked off a four-night stand at the Bolshoi Oktyabrsky (Great October) Concert Hall in Leningrad.

After the opening night concert, Elton was reportedly asked to tone down his show and refrain from playing a cover of The Beatles’ “Back in the U.S.S.R.,” but he continued to keep the song in his set.

The Leningrad shows were followed by four shows in Moscow at the Rossiya Concert Hall, with the final night broadcast live in Europe by the BBC.

Songs played during the shows included “Your Song,” “Daniel,” “Rocket Man,” “Goodbye Yellow Brick Road” and more.

The concerts were recorded for a documentary, To Russia… with Elton, that featured footage from the final Moscow show.

Copyright © 2026, ABC Audio. All rights reserved.

Bruce Springsteen performs ‘Streets of Minneapolis’ on penultimate ‘The Late Show’

Bruce Springsteen performs ‘Streets of Minneapolis’ on penultimate ‘The Late Show’
Bruce Springsteen performs ‘Streets of Minneapolis’ on penultimate ‘The Late Show’
‘The Late Show with Stephen Colbert’ art (CBS)

Bruce Springsteen was the final announced musical guest on The Late Show with Stephen Colbert Wednesday night, and he let his feelings be known as to who he thinks is responsible for the late night talk show’s cancelation.

“I am here in support tonight for Stephen because you’re the first guy in America who’s lost a show because we got a president who can’t take a joke,” said The Boss, noting that CBS’ new owners, Larry and David Ellison, “feel they need to kiss his a** to get what they want.”

He added, “Stephen these are small minded people that got no idea what the freedoms of this beautiful country are supposed to be about. This is for you.”

Springsteen then performed his protest song “Streets of Minneapolis,” which he released in January. He said he wrote the song in “response to the state terror being visited on the city of Minneapolis,” including the fatal shootings of Alex Pretti and Renee Good.

The Late Show premiered on CBS in 1993, with David Letterman as host. Colbert took over when Letterman left in 2015.

CBS announced the show’s cancelation in July, noting it was a financial decision. Stephen Colbert will sign off The Late Show on Thursday; no guests for the finale have been revealed.

Copyright © 2026, ABC Audio. All rights reserved.

DHS announces Ebola outbreak flight arrival restrictions for DRC, Uganda, South Sudan

DHS announces Ebola outbreak flight arrival restrictions for DRC, Uganda, South Sudan
DHS announces Ebola outbreak flight arrival restrictions for DRC, Uganda, South Sudan
Created by CDC microbiologist Frederick A Murphy, this transmission electron micrograph (TEM) revealed some of the ultrastructural morphology displayed by an Ebola virus virion. (Photo by Smith Collection/Gado/Getty Images).

(NEW YORK) — The Department of Homeland Security on Wednesday announced new arrival restrictions for flights carrying people who were recently in Democratic Republic of Congo, Uganda or South Sudan amid the Ebola outbreak in the region.

All flights — excluding those operated by the Pentagon — departing after 11:59 p.m. ET on Wednesday carrying passengers that were in the named nations within 21 days of attempted entry into the U.S. will be ordered to land at Washington-Dulles Airport in Virginia, the notice said, where “enhanced public health measures are being implemented.”

The Ebola outbreak in the eastern DRC had caused 139 suspected deaths with nearly 600 suspected cases as of Wednesday, according to an update from World Health Organization Director-General Dr. Tedros Adhanom Ghebreyesus.

Tedros said cases of Ebola have been reported in several urban areas of the eastern DRC amid the ongoing outbreak, including the major cities of Goma and Bunia, and that at least two cases and one death have been recorded in neighboring Uganda’s capital, Kampala. Cases have also been reported among health workers, according to Ghebreyesus.

At least 51 cases have so far been confirmed in the ongoing outbreak.

The DHS flight restriction notice said that while South Sudan has not reported any confirmed cases in the current outbreak, “It is considered at high risk because of its close border with affected areas in eastern DRC and Uganda, limited healthcare infrastructure and cross-border population movement.”

The outbreak was first detected in the DRC’s northeastern province of Ituri, with cases officially confirmed by the health ministry on May 15. It marked the 17th outbreak of Ebola virus disease in the DRC, which is Africa’s second-largest country and its fourth-most populous nation.

The WHO convened an emergency committee on Tuesday night, following Tedros’ declaration of a public health emergency of international concern on Sunday — one level below a pandemic in the United Nations agency’s alert system.

It was the first time a WHO chief had declared such an emergency before convening the emergency committee. After the meeting, the committee agreed that the outbreak did not meet the criteria of a pandemic emergency, which was applied to the global COVID-19 outbreak.

Anais Legand, the WHO’s technical officer for viral hemorrhagic fevers, said on Wednesday that the Ebola outbreak may have started a couple of months ago and that investigations are ongoing.

“Our priority is really to cut the transmission chain by implementing contact tracing, isolating and caring for all suspects and confirmed cases,” she said.

The current outbreak is caused by the Bundibugyo virus, a rare variant of Ebola for which there are no approved vaccines or therapeutics and which requires different diagnostics than other variants. Case fatality rates for previous Bundibugyo outbreaks have ranged from 30% to 50%, according to the WHO.

Among the confirmed cases is an American, Dr. Peter Stafford, who contracted the disease while working in the DRC. Stafford was flown out of the DRC and is now hospitalized in Berlin’s Charité University Hospital.

Matt Allison — the executive director of Serge, the Christian missionary group Stafford works for — told ABC News on Wednesday that the doctor has been receiving monoclonal antibodies during his hospitalization and is “responding quickly.”

Dr. Satish K. Pillai, incident manager for the Centers for Disease Control and Prevention’s Ebola response, confirmed at a CDC press conference on Tuesday that genetic testing from this outbreak shows it is similar to the “genetic fingerprints” from outbreaks in 2007 and 2012, meaning there are diagnostic tools available that can detect this strain of Ebola.

Pillai said on Monday that the agency had activated its Emergency Operations Center through its country offices in the DRC and in Uganda, and is deploying technical experts that have been requested from Atlanta headquarters.

The risk to the U.S. general public remains low, Pillai said.

Also on Monday, the CDC introduced entry restrictions on non-U.S. passport holders that had been in Uganda, the DRC or South Sudan in the previous 21 days before attempted entry into the U.S.

ABC News’ Eric M. Strauss, Mary Kekatos and Morgan Winsor contributed to this report.

Copyright © 2026, ABC Audio. All rights reserved.

What rising bond yields mean for mortgages and credit card rates

What rising bond yields mean for mortgages and credit card rates
What rising bond yields mean for mortgages and credit card rates
Houses with a ‘For Sale’ sign in a small new neighborhood in Gunnison, Colorado 6/18/20 (Nathan Bilow/Getty Images)

(NEW YORK) — U.S. Treasury yields soared in recent days as the Iran war stoked inflation fears, threatening to drive up borrowing costs for everything from mortgages to credit cards to auto loans.

The yields on 30-year bonds – the amount paid to a bondholder annually – touched their highest point since 2007. Ten-year Treasury yields peaked at about 4.69% on Tuesday, marking a roughly three-quarter percentage point jump from the start of the war on Feb. 28.

The yield on 10-year Treasuries retreated on Wednesday, registering at 4.58%. Still, yields exceed the level reached during a bond selloff in the aftermath of President Donald Trump’s “Liberation Day” tariffs in April 2025.

Since bonds pay a given investor a fixed amount each year, the specter of inflation risks higher consumer prices that would eat away at those annual payouts. In this case, a global oil shock has pushed up energy prices which in turn has trickled into other costs, such as groceries.

As a result, bonds have become less attractive. When demand falls, bond yields rise.

“It’s really all about the Iran war and its inflationary impact,” Ted Rossman, a senior industry analyst at Bankrate, told ABC News.

High bond yields make borrowing more expensive for average Americans because Treasury rates influence the rates offered by lenders.

Long-term Treasury yields help set interest payments for mortgages, credit cards, car loans and just about any other type of borrowing, Patrice Carrington, a professor of real estate at New York University, told ABC News.

The reason for the rise in borrowing costs is that regulated lenders are required to hold reserve assets, often made up in part by U.S. Treasuries, Carrington added. When Treasury yields rise, it raises the costs incurred by banks holding Treasuries on their books. Lenders, in turn, offset those added expenses with higher borrowing costs.

“The bank will pass along that higher cost of capital to any consumer loan,” Carrington said.

The onset of this pain for consumers is exemplified by the housing market, where the average interest rate for a 30-year fixed mortgage stands at 6.72% as of Monday, Mortgage News Daily data showed. Mortgage rates have climbed three-quarters of a percentage point from pre-war levels.

“That’s a really big jump,” Rossman said.

Each percentage-point rise in a mortgage rate can impose thousands or tens of thousands of dollars in additional costs each year, depending on the price of the house, according to Rocket Mortgage.

Credit card rates, by contrast, have remained flat over the course of the Iran war, though at heightened levels, Rossman said.

The average credit card interest rate stands at 19.57%, just slightly below where it stood before the war began, Bankrate data showed. At the start of 2026, futures markets expected the Fed to likely cut interest rates at least once by the end of the year, which would put downward pressure on credit card rates.

As the Fed weathers a renewed bout of inflation, however, markets estimate about a 50% chance of interest rates remaining unchanged over the course of the year and a 37% chance of a rate hike, according to the CME FedWatch Tool, a measure of market sentiment. Markets peg the odds of a rate cut this year at less than 2%.

As a result, credit card rates “are staying higher for longer” than many observers anticipated, Rossman said.

Analysts differed in their recommendations for consumers weighing whether to move forward now with securing a loan or wait for a potential decline in interest rates.

Liu Lu, a professor at the Wharton School at the University of Pennsylvania, said mortgage rates are unlikely to decline substantially in the near-term, meaning borrowers who can afford a loan at current rates may as well take the plunge.

“I wouldn’t bet on trying to catch the opportune moment,” Lu told ABC News.

Carrington, on the other hand, counseled patience for loan seekers.

Eventually, the economy will falter and the Fed will cut interest rates, pushing down borrowing costs, according to Carrington.

“We’re long overdue for a downturn,” Carrington said. “I absolutely think borrowers should wait.”

In the meantime, the impact of elevated bond yields on consumers isn’t entirely negative. The trend means better returns for investors who place their money into financial instruments such as money market funds or high-interest savings accounts, which are historically safer investments than the stock market.

Copyright © 2026, ABC Audio. All rights reserved.