Druckenmiller warns Treasury buybacks could amplify market risk

Legendary U.S. hedge fund investor Stanley Druckenmiller warned that U.S. Treasury bond buybacks could instead amplify market risk, CoinDesk reported, citing a recent Wall Street Journal opinion piece by Druckenmiller. In the article, Druckenmiller said governments that try to defend asset prices against fundamentals have always failed. Druckenmiller added that higher interest rates signal risks ahead, and artificially suppressing them could undermine fiscal discipline and encourage political excess. Druckenmiller also argued that the current 10-year Treasury yield of 4.70% is a normal level reflecting nominal growth, while financial conditions remain accommodative, leaving little justification for market intervention. Druckenmiller is also known as a mentor to U.S. Treasury Secretary Scott Bessent, who previously worked as a hedge fund investor.