According to government figures released on Friday, the nation's gross domestic product fell to 0.7 percent in the first quarter — the lowest rate in three years — as personal spending slid to its worst level since 2009. That data came on the heels of a jobs report that showed the economy created far fewer jobs in March than the prior month, even as the unemployment rate fell.
Paul told CNBC a correction is "inevitable," even as investors cheer the Nasdaq composite's new record highs.
"We spend too much, we borrow too much, and we distort the markets," Paul said on "Trading Nation" this week. "The bigger the distortions have lasted, the bigger the bust will be."
The Federal Reserve holds its meeting on interest rates the first week in May. Wall Street doesn't predict a rate hike this time, but the consensus still calls for two more rate hikes this year.
