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Policy Regula
2026-09-11 03:06:38

Druckenmiller says Treasury yields are not high and rate cuts are no longer needed

Stanley Druckenmiller said at a closed-door meeting in New York on Sept. 11 that U.S. borrowing costs are "even a little low" and that rate cuts are no longer necessary. He also said Federal Reserve officials who still view monetary policy as restrictive are "ridiculous." Druckenmiller argued that, given the state of the U.S. economy, a capital spending boom, and competition for capital, Treasury yields are not especially high. He said the recent rise in yields has been a slow move driven by fundamentals and does not worry him. At the time of his remarks, the 30-year U.S. Treasury yield briefly climbed to 5.35%, the highest level since 2007, while the 10-year yield approached 5%. He also commented on artificial intelligence and currencies. Druckenmiller said most of Duquesne Capital’s recent profits came from AI investments, but that the firm’s AI position has been cut to 20% of what it was six months ago. He said the AI build-out phase may be nearing a later stage, that markets need to be more cautious, and that corporate earnings may be in a bubble fueled by the AI investment boom. In foreign exchange, he said he does not want to short the U.S. dollar because the United States has a clear global edge in AI. He added that he has been short the euro and the British pound since the start of the year, though those positions are much smaller than his past currency bets.

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Druckenmiller says Treasury yields are not high and rate cuts are no longer needed
Gate data shows WTI crude down 1.02% to $103.45 a barrel