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title: Druckenmiller Warns US Borrowing Costs Remain Too Low
description: "Via Financial Times Companies: Stanley Druckenmiller told a private Wall Street audience that US borrowing costs remain \"a little low\" despite recent yield s..."
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### Druckenmiller Warns US Borrowing Costs Remain Too Low

Financial Times Companies • September 10, 2026 at 1:21 PM ET

[×](/market?tab=ft-companies)

Stanley Druckenmiller told a private Wall Street audience that US borrowing costs remain "a little low" despite recent yield surges. The macro hedge fund manager, a close ally of Fed chair Kevin Warsh, argued that committee members calling current rates restrictive are "ridiculous." Druckenmiller stated that rate cuts are no longer needed, asserting that if anything, yields are too low given the economy's capital spending boom and ongoing AI-driven bond issuance. His comments come amid a sell-off in Treasuries sparked by inflation from the Iran war, rising public debt, and heavy AI company bond sales.

The 30-year US bond yield jumped to 5.35 percent, its highest level since 2007, while the 10-year yield approached 5 percent. Druckenmiller, who previously criticized Treasury secretary Scott Bessent's expanded bond buyback program, warned that the upsized $6 billion operation has disappointed investors. He maintains the yield rise is a "slow, fundamentally driven march upward" and is not alarming.

Most of his recent profits come from AI bets, though he has reduced Duquesne Capital's AI exposure to 20 percent of previous levels. He warned that high earnings cannot help the market rise indefinitely, suggesting an earnings bubble forms as the AI build-out ends.

[Read original article](https://www.ft.com/content/7410c56e-5350-48f8-a5e6-24f37c1581e9?syn-25a6b1a6=1)

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