04/21/26 Afternoon CommStock Report – The Rubicon of Ending Fed Independence

I recently renewed a CD for a relative as POA for 3.6% for 7 months. Given that inflation is 3.3% and rising, there is little net gain in the current rate above inflation. Money is devaluing as fast as it collects interest. Yet, President Trump is adamant that rates should come down a lot and is frustrated by his lack of control over the Federal Reserve to make that happen. He is not a patient man and has viewed Fed Chairman Jerome Powell as an obstacle to the monetary policy that he has been demanding. He wants lower rates which would boost the economy. If folks can borrow money cheaper than the rate of inflation, then there is a net negative interest rate which encourages borrowing. That sounds like the 1970s to me. Until it all catches up to the economy… and then you get the 1980s. President Trump has shown no real concern over the massive Federal deficit in his policy or budgets in either of his two terms. A 50% hike in military spending is another $500 bln coming from somewhere. The BBBA budget model did not include the cost of wars in it. The Fed has been…

This content is for members only.
Register

Already a member? Log in here

Futures trading involves risk. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance is not indicative of future results.

Trading advice is based on information taken from trades and statistical services and other sources that CommStock Investments believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice.

There is no guarantee that the advice we give will result in profitable trades.

The views and opinions expressed in this newsletter are those of the author and do not reflect those of R.J. O'Brien & Associates LLC. This report may contain political opinions as well as market opinions and commentary. Any content provided by Commstock Investments or authors are of their opinion and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.