The Federal Reserve should be more aggressive about raising interest rates, Stephen Roach, a senior fellow at Yale University, told CNBC Thursday. If not, he fears it could end very badly for the economy.
When the central bank was incremental in normalizing rates 10 years ago during a time of enormous froth in the housing, equity and credit markets, it led to huge distortions in the real economy, he said in an interview with "Closing Bell."
"Finally, when the bubbles popped the whole house of cards came down."
The Fed still hasn't learned its lesson, he added.
"[It] doesn't appreciate the precedent of what put world through a decade ago and I fear they're doing it again."