The Federal Reserve is “self-destructing” through of its efforts to jump-start the US economy with more monetary easing, Rep. Ron Paul, (R-Texas), told CNBC Monday.
Paul said the Fed’s decision last Wednesday to spend an additional $600 billion in quantitative easing—buying Treasurys to lower interest rates—won't work and will destroy the dollar's value around the world.
“They (the Fed) can’t manage a dollar like this,” said Paul. “People are going to desert the dollar. I think the Chinese are hinting that already: They’re not wanting our dollars as much as they want raw materials and other things."
Paul, a frequent critic of the Fed, is likely to become chairman of a subcommittee that oversees monetary policy when the new Congress takes over in January.
In an interview last week with CNBC.com's NetNet, Paul said his first priority will be to open up the books of the Fed.