Stanley Druckenmiller said rate cuts are no longer necessary and described repeated claims by Fed officials that the federal funds rate is restrictive as “absurd.” He said the rise in U.S. Treasury yields is a slow, fundamentally driven trend, adding that yields are “a little low” even allowing for deviations. Druckenmiller said Duquesne has reduced its AI-related holdings to about 20% of their level six months ago. He warned that high profits driven by the AI construction cycle may be hard to sustain long term and said the market may be in a “profit bubble.” In foreign exchange, he continues to short the euro and British pound but said he does not dare short the U.S. dollar, citing the U.S.’s significant global advantage in AI while Europe is “almost absent” from the race.