us rates

Stanley Druck

2026-09-11 11:39:22

Stanley Druckenmiller blasts Fed doves, says AI may be in an earnings bubble

Veteran investor Stanley Druckenmiller used a closed-door event in New York to deliver a blunt message on U.S. rates, the Federal Reserve and the AI trade. Speaking Thursday morning at a Piper Sandler conference, Druckenmiller said rate cuts were "no longer necessary" and called it "ridiculous" for Fed officials to keep describing the federal funds rate as restrictive. His remarks came as long-dated Treasury yields climbed, with the 30-year U.S. Treasury yield up 7 basis points at 5.36%, its highest level since 2007, while the 10-year yield approached 5%. Druckenmiller said bond yields, if mispriced at all, were probably still too low given the economic backdrop, strong capital spending and a global contest for capital. He described the recent move higher in yields as a slow, fundamentals-driven rise that did not concern him. He also struck a more cautious tone on artificial intelligence. Druckenmiller said his family office, Duquesne Capital, had cut its AI exposure to 20% of what it was six months ago, even though most of its recent profits had come from AI bets rather than traditional macro trades in currencies or bonds. He warned that Wall Street may be in an "earnings bubble" tied to the AI buildout cycle. On foreign exchange, he said he has been short the euro and the British pound since the start of the year, but is not willing to short the U.S. dollar.

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gold

2026-08-06 13:54:29

World Gold Council: Central Banks and Asian Investors Are Broadening Gold's Price Drivers

The World Gold Council said on Aug 6 that central bank purchases and Asian investor demand are becoming increasingly important for gold pricing. These flows do not necessarily follow US rates, the dollar, or inflation. The council said this does not mean real interest rates have lost their effect; instead, gold's pricing drivers have become more diversified. In the near term, rising yields can still pressure gold. But if tight policy eventually causes problems in growth, inflation, or some part of the financial system, longer-term yields could fall. With central bank and Asian demand, gold could still find support - just not necessarily repeat 2025's outsized gains. (Source: Jinshi)

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