The Federal Reserve is
expected to announce on Wednesday further tapering while holding its
benchmark interest rate near zero, but the central bank is wrong to
manipulate interest rates at all, former Republican congressman and
presidential candidate Ron Paul told CNBC.
(Read more: Wall St eyes Yellen for possible job target shift)
“It’s an illusion. I don’t
think any one individual knows how to plan the economy by manipulating
interest rates. Interest rates are so important that if you give this
power to one small group or one individual, there will be distortion,”
Paul said Wednesday on “Squawk on the Street.”
“So sometimes you have housing
bubbles and sometimes you have housing busts, then you have housing
bubbles and bond bubbles that’s all [the] result of the manipulation of
interest rates, which is my real objection to it.”http://www.cnbc.com/id/101507139
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