Druckenmiller Mistakes the US Treasury for a Hedge Fund
The billionaire’s criticism of Janet Yellen seems to willfully ignore the crucial need to keep the market for government securities boring and predictable.
Janet Yellen (L) and Steven Mnuchin both had the opportunity to use low rates to term out US debt.
Photographer: Andrew Caballero-Reynolds/AFP via Getty Images
Billionaire Stan Druckenmiller isn’t letting up on his criticism of US Treasury Secretary Janet Yellen. Druckenmiller says Yellen committed an epic mistake by failing to meaningfully term out America’s debt when rates were ultra-low — a missed opportunity he’s characterized as “the biggest blunder in the history of the Treasury.”
On top of some obvious partisan overtones, that characterization seems to treat the world’s largest budget like a hedge fund. It’s also wildly unfair.