Stanley Druckenmiller, described in the report as a shared mentor to Fed Chair Warsh and Treasury Secretary Bessent, said in a closed-door meeting that there is no longer any need for rate cuts. He called it "absurd" for Federal Reserve officials to keep saying the federal funds rate is restrictive, arguing that the rise in U.S. Treasury yields reflects a slow, fundamentals-driven trend and that yields may even be a bit low.
Druckenmiller also said his family office, Duquesne, has cut its AI-related positions to about 20% of what they were six months ago. He warned that the high profits tied to the AI buildout cycle may not be sustainable over the long run and said the market could be in an "earnings bubble."
In foreign exchange, he said he remains short the euro and the British pound, but is not willing to short the U.S. dollar. He attributed that stance to what he sees as a significant U.S. global advantage in AI, while Europe is "almost absent" from that race.
PANews reported on Sept. 11 that legendary investor Stanley Druckenmiller said at a closed-door meeting that rate cuts are no longer necessary.
He also said it is "absurd" for Federal Reserve officials to repeatedly describe the federal funds rate as restrictive. In his view, the recent rise in U.S. Treasury yields is a slow trend driven by fundamentals, and even if yields have moved away from where they should be, they are "even a bit low."
Druckenmiller said his family office, Duquesne, has reduced its AI-related holdings to about 20% of the level seen six months ago. He warned that the high profits generated by the AI buildout cycle are unlikely to last over the long term and said the market may now be in an "earnings bubble."
In currencies, he said he remains short the euro and the British pound, but is not prepared to short the U.S. dollar. He said that is because the United States holds a significant global edge in AI, while Europe is "almost absent" from the race.
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