Forward Guidance · Thursday, August 27, 2026
Legendary investor Stan Druckenmiller has penned an op-ed criticizing Treasury Secretary Scott Besson's alleged use of buybacks to defend against higher yields. Druckenmiller argues that artificial yield suppression acts as a subsidy to procrastination and that buybacks should be reserved for small, scheduled liquidity operations.
“I've spent five decades trading on a simple premise. Markets aggregate information. No committee possesses. And prices are how that information reaches decision makers.”
“The long-term Treasury yield is the most important price in the world. It is also the only fiscal disciplinary the US has left.”
“Every basis point of artificial yield suppression is a subsidy to procrastination. Return buybacks to their stated purpose, small scheduled author around liquidity operations, announced accordingly refundings, never off cycle, which is what just happened.”