Ron Paul Warns Fed Taper Too Little Too Late

Former GOP presidential candidate Ron Paul told CNBC on Thursday that investors should not be fooled by the Federal Reserve’s “little” taper, as it is still manipulating the price of money and interest rates.

The Fed said Wednesday that the economy was strong enough for the central bank to begin scaling back its bond-buying program, but Paul called the taper too little, too late.

“There are still structural problems in the economy, and it’s all related to monetary policy, and of course regulations and spending by our Congress,” he said on “Squawk on the Street.”

“They say they’re going to taper, which means they have to buy less. … But then the Fed says, ‘Well, we’re going to guarantee that interest rates won’t rise.’ “But how do you keep interest rates from rising? You have to buy stuff,” he said. “In some ways it’s a little bit schizophrenic.

“This whole policy of pretending that they’re having major changes, and not buying quite so many bonds, and buying short term bills instead—[that] could change in a minute,” Paul added.

This is not a good time to invest in the stock market, he said.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza