Ron Paul: This would 'shake-up' the market

Long-time Fed critic Ron Paul has a stern message for FOMC Chair Janet Yellen: Raise rates or crash the market.

On CNBC's "Futures Now" Thursday, the former U.S. representative said that if the U.S. central bank surprises Wall Street and opts to not raise interest rates next week, it could send stocks and bonds tumbling. "It looks like it would be a real shock to everybody, including the markets if they don't hike," said Paul, who up until recently believed the Fed would not hike this year. "It would really shake up the markets," and add "another degree of uncertainty" for investors, he added. As he believes a rate hike is already priced into the equity and fixed-income markets.

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"In a way, it's amazing the amount of attention it's been getting when you think what a quarter-percent of interest means," said Paul, a former Republican presidential candidate. "Of course it annoys me a lot because I don't believe there should be any regulation on interest rates because you destroy the very information most people should have to make good business decisions."

According to Paul, by keeping interest rates at zero for nearly a decade, the Federal Reserve has driven a wedge in the United States. "I think what we are seeing is two economies: Wall Street and Main Street," he said. "Wall Street has done pretty well [because] they can get money for free and buy their own stocks." Corporate buybacks have been on the rise in 2015, as strong dollar has put increasing pressure on company's earnings. Meanwhile, said Paul, looking at the middle class there's "a lot of unemployment out there" and "there's a lot more inflation that [the government] doesn't want to admit."

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The economy has grown at a slow but steady pace this year, with U.S. GDP resting at above 2 percent and U.S. unemployment falling to a more than seven-year low. However, despite signs of improvement, Paul maintains that he does not "consider this a healthy, growing economy."

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