Former Texas Congressman Ron Paul, who’s run for president several times, is predicting that the Federal Reserve’s actions will have serious consequences for the stock market, just as the latest growth figures suggest the economy may have hit a soft patch.
According to government figures released on Friday, the nation’s gross domestic product fell to 0.7% in the first quarter — the lowest rate in three years— as personal spending slid to its worst level since 2009. That data came on the heels of a jobs report that showed the economy created far fewer jobs in March than the prior month, even as the unemployment rate fell.
Paul told CNBC a correction is “inevitable,” even as investors cheer the Nasdaq Composite’s new record highs.
“We spend too much, we borrow too much, and we distort the markets,” said Paul on “Trading Nation” this week. “The bigger the distortions have lasted, the bigger the bust will be.”
