The Fed Does Nothing - Again - And Mike Goes on a Field Trip -

The Fed met last week and once again took no action. As usual, the headlines were generated by the things Powell & Company said and didn't say. 
In this episode of the Midweek Memo podcast, host Mike Maharrey analyzes the meeting and the messaging that came out of it. He explains why the rhetoric has very little connection to reality because everybody seems to be ignoring the proverbial elephant in the room – the Debt Black Hole. That has significant ramifications, as Mike explains.
In this episode, Mike also shares some things he saw on his recent field trip to the Money Metals facility in Idaho.
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Mike opens the show by reminiscing about school field trips. 
<blockquote>
"Like most kids, I loved them. One of the favorites that I remember vividly was a trip to the fire station.  It wasn’t just about getting out of class for a day – although that was no doubt part of the appeal. But I enjoyed learning how the 'real world' worked.
"So, last week, I got to go on a field trip to Money Metals’ facility out in Eagle, Idaho. The purpose of the trip was to film videos for marketing and social media. So, it was definitely a work trip. However, it wasn’t unlike those school field trips. I got to learn a little more about how the 'real world' at Money Metals works! There were several things that stood out to me on this visit that I’d like to share."
</blockquote>
Mike says the first thing that struck him was the quality of Money Metals' team. 
<blockquote>
"From the security team, to the folks in fulfillment, to the precious metal specialist working the phones, everybody is top-notch. That says a lot about the values of a company."
</blockquote>
Mike notes that he often encourages listeners to call 800-800-1865 and talk to a precious metals specialist, emphasizing that they are fantastic, knowledgeable, and eager to answer your questions.
<blockquote>
"Well, I spent some time interviewing some of the sales team, and I actually may have understated just how good they are. I asked about how they answered various questions, and they were all over it. One thing that struck me was their genuine desire to help. It’s obvious they love what they do, and they want to help you preserve your wealth with sound money. They not only know their products; they understand the economics behind monetary policy. They can explain why your dollar is devaluing every day. And they are engaged enough to find out what your goals are. Keep in mind, they’re not working on commission, so you don’t have to worry about somebody trying to bait and switch you into a higher premium product."
</blockquote>
Mike also talks about the impressiveness of Money Metals' bullion depository, emphasizing the state-of-the-art security.
<blockquote>
"And the employees themselves add another layer of security. The company offers firearms training to any employee who wants it, and once completed, they’re encouraged to carry at work. There was a class while I was there."
</blockquote>
Mike says he can store his precious metals in the Money Metals depository with complete confidence. 
<blockquote>
"It’s not just the security. It’s the procedures. Your metal is segregated and stored in its own sealed box. Everything is carefully logged. You can even get a photo of your metal in the vault on an annual basis for additional peace of mind."
</blockquote>
Mike reveals that they were prepping the vaults for an audit while he was there. 
<blockquote>
"The U.S. government should take notes. As you probably know, thorough audits aren’t a thing at Fort Knox. But they are in Eagle, Idaho. Not only do we undergo external third-party audits; there is also a rigorous internal audit process in place. I can assure you that they know exactly what is in the depository and where exactly it’s stored. Your government can't say that about its gold!"
</blockquote>
Mike emphasizes how proud he is to work for Money Metals. 
<blockquote>
"Nobody told me to say any of this. It wasn’t even suggested. I shared all of this because I was genuinely impressed, and I want you to know that if you’re looking to buy or sell gold, or need a place to store your metal, you can do business with Money Metals Exchange with complete confidence. Think of this as a personal recommendation."
</blockquote>
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While Mike was in Idaho, the Federal Reserve wrapped up its April FOMC meeting. It didn't do anything. Interest rates remain right where they were. 
<blockquote>
"As usual, the big news centered around what Powell & Company said and didn’t say."
</blockquote>
The fact that the Fed decision was far from unanimous was probably the biggest news to come out of the meeting. 
<blockquote>
"Four FOMC members voted against the move/statement. The last time four members dissented was in 1992."
</blockquote>
One committee member wanted to cut rates, and three objected to language in the official statement that hinted the next move would be an additional cut. 
Mike says the overall tone of the meeting feeds into the current perception that the central bank will keep rates higher for longer to battle potential price inflation due to the energy shock from the war in Iran.
He doesn't think that perception matches reality.
<blockquote>
"The interest rate hawks seem to be ignoring the proverbial elephant in the room – <a href="https://www.moneymetals.com/podcasts/2025/11/12/the-debt-black-hole-004473">the debt black hole</a>."
</blockquote>
Mike emphasizes just how much debt is burdening the economy. It's not just government debt. Consumers and corporations are also leveraged to the hilt thanks to nearly two decades of easy money. 
<blockquote>
"Debt-riddled economies don’t run on higher interest rates. This is precisely why President Trump and many others have been pushing for rate cuts. They want the stimulus. They want to facilitate more debt to keep the bubbles inflated.  In other words, they want the addict to get more of his drug."
</blockquote>
Mike says an objective analysis of the economic conditions justifies holding rates higher for longer, or even raising rates. He argues that the  Fed never did enough to slay inflation, reminding listeners that Volker cranked rates to 20 percent to slay the inflation of the 1970s. Given the stubbornly high CPI and the looming trickle-down effects from $100-plus per barrel oil, it would be hard to argue against a rate hike. So, why don’t they hike?
<blockquote>
"Because they know that rate hikes would run a dagger through the heart of this debt-riddled bubble economy."
</blockquote>
Mike notes that the national debt took the spotlight for a moment last week as it reached another ominous milestone. 
<blockquote>
"The federal debt-to-GDP ratio has crossed the 100 percent threshold. In other words, the U.S. government owes the world more money than the economy's total annual output. And it’s actually worse than that. There is additional federal debt not factored into the data that produced this eye-bulging headline."
</blockquote>
Mike breaks down the numbers and explains why the National Debt Clock shows an even higher debt-to-GDP ratio. 
<blockquote>
"And keep in mind that none of this takes into consideration the unfunded obligations looming in the future. That pushes the debt to over $100 trillion.
"No matter how you slice and dice the numbers, they spell b-a-d n-e-w-s.
"And that’s why the Fed is in a Catch-22. It simultaneously needs to hike interest rates to fight inflation and cut them to rescue the economy. It obviously can't do both."
</blockquote>
Mike points out that CNBC seemed to discover this Catch-22 recently. 
<blockquote>
"They published an article yesterday with this opening line. 'Central banks risk a global recession by raising interest rates in a bid to contain soaring energy costs, an analyst has said.' Well, this analyst has been saying it for well over a year. So, you guys are way ahead of the mainstream."
</blockquote>
Mike says that he thinks holding rates steady or raising them will ultimately have the same effect.
<blockquote>
"When the economy visibly cracks, the Fed will be forced to get even more aggressive in loosening monetary policy – elevated inflation or not. If history is any indication, it will cut rates to zero again and launch more rounds of <a href="https://moneymetalsexchange.medium.com/the-fed-restarted-qe-without-saying-it-f395e20ed6a8">quantitative easing</a> (QE). That means even more inflation. The worst-case scenario is a protracted period of stagflation."
</blockquote>
Mike said the bottom line is you should expect inflation to continue and even accelerate – and you should plan accordingly.
<blockquote>
"You might want to have an inflation hedge. If you want real money that will hold its value over time, call 800-800-1865."
</blockquote>
<h2>Articles Mentioned During the Show</h2>
<a href="https://www.moneymetals.com/news/2026/04/21/inflation-alert-the-federal-reserve-balance-sheet-is-growing-again-004853">Inflation Alert: The Federal Reserve Balance Sheet Is Growing Again </a>
<a href="https://www.moneymetals.com/podcasts/2026/04/15/whats-really-inside-those-fort-knox-gold-vaults-004837">What's Really Inside Those Fort Knox Vaults?</a>
<img src="https://www.moneymetals.com/uploads/content/gross-debt-to-gdp-526.png" width="800" height="424" class="mx-auto float-left p-3" alt="" />

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