Stanley Druckenmiller Says Fed Rate Cuts Are Unnecessary and Cuts AI Holdings

Stanley Druckenmiller said at a closed-door meeting that interest-rate cuts are no longer necessary and called Federal Reserve officials' repeated claims that the federal funds rate is restrictive absurd. He also said rising U.S. Treasury yields reflect a slow, fundamentals-driven trend and that yields are still somewhat low even if they have moved away from that path. According to PANews, Druckenmiller said his family office, Duquesne, has reduced its AI-related holdings to about 20% from six months ago. He warned that high profits driven by the AI buildout cycle may not be sustainable and said the sector may be in a "profit bubble." In foreign exchange, Druckenmiller said he remains short the euro and the pound, but does not want to short the dollar. He said the U.S. has a significant global advantage in AI, while Europe is almost absent from the race.