The Federal Reserve will meet this week to talk about monetary policy.
A once hawkish Fed has been making a turn for the Dovish in recent months, which has been pressured by President Donald Trump to loosen the rate and a market that is worried about a possible recession earlier this year.
The Fed is already playing with the idea of holding a bigger balance than previously thought, the Wall Street Journal said on Friday. $ 5 trillion reduced since October 201
"There are too many unknowns, and I think they are causing problems have [either tooling with interest rates or shrinking the balance sheet] and that will not only persist the bubble, it will make the bubble even bigger, and when the final end comes, it will be much worse, "Paul said.
Previously Paul us predicted a 50% decline in the stock market that could hit this year. He also described the stock market as one of the biggest soap bubbles "in the history of mankind".
The solution, Paul says, is that the arm of the Fed, which controls monetary policy, stops it.
"I propose nothing but getting the government out of business, getting the Fed out, and getting to market prices because you can not do that," he said. "This is the mistake, but it is deeply rooted."
Fed Chairman Jerome Powell and other members of the Federal Open Market Committee will meet Tuesday for their two-day meeting. Markets do not price interest rate changes.