By Paul Bedard
Cutting through Washington’s muddled message on the economy, Sen. Rand Paul (R-Ky.) late Tuesday predicted that recent unchecked federal spending will result in double digit inflation, a recession and growing unemployment.
“I wish I had better news but we will get through this as a country. We’re a strong resilient country, strong, resilient people. We just have to get people in charge of our government who understand that we have to live within our means,” the straight-talking senator said in a Facebook Live Q and A with constituents.
Long a proponent of a balanced budget and reduced federal spending, Paul said that after a series of mega spending bills to counter the COVID-19 economic hit, the pain is about to hit.
And unlike others in Washington, he said that high gas prices, increased mortgage rates and unemployment will rise as a way to temper inflation eventually.
“Nobody knows the future. And this is my prediction,” said Paul. “I think we can go back to double digit interest rates. I think that that’s in our future, but I think a recession and high unemployment is too and that’s the way inflation gets cured,” he said.
Paul was addressing a question from a real estate agent worried about higher interest rates impacting sales.
“I think the Federal Reserve is going to keep putting them up a half a point every time they meet. I think that happens probably every four to six weeks until they reach the inflation rate and inflation rate is eight and a half (percent) and we’re, you know, closer to the Fed funds rate being around three (percent) or so. So you can see how there’s still quite a bit of ways where interest rates are going to rise. And this is something people have to think about, you know, in making their plans,” he said, advising new buyers to lock in their best rate now.