Republican presidential candidate Rand Paul is warning that a stock market crash may be coming because the Federal Reserve has kept interest rates from fluctuating, Radio Iowa reported.
“People say, 'Oh, we can just do that forever,'” the Kentucky senator said Wednesday, according to the radio network. “I don’t think so. I think there’ll be a day of reckoning.”
Paul's family has a long history of Fed criticism. His father, former congressman (and three-time presidential candidate) Ron Paul, wrote a book called "End the Fed." The younger Paul, who hasn't gone quite that far (his campaign mantra is "audit the Fed"), made his comments while campaigning in Sioux City.
He also opined that the housing crisis of the late 2000s was not prompted by “greed” so much as the Fed. The central bank's policy of keeping interest rates “close to zero” may have been the bigger factor, Paul suggested.
Now, the senator forsees another crisis in the offing. “The boom isn’t in housing this time, but it may well be a boom in the stock market,” Radio Iowa quoted Paul as saying. “What happens when people come to the realization that we’ve maybe over-inflated the stock market again?”