Excessively accomodative policies by the Federal Reserve are “playing games with money” and are an ineffective way to “juice the system,” GOP presidential candidate Ted Cruz told CNBC on Friday. Such actions “create bubbles,” he said.
“The Fed has, for those with assets, driven up stock prices,” he said in a wide-ranging “Squawk Box” interview. “But that’s not built on anything real. It’s not built on an increase in the intrinsic value of those assets. That’s just playing games with money, which means a crash will be coming.”
Cruz said Fed monetary policy should not target a strong or weak dollar but a stable dollar. He argued the U.S. needs monetary policy stability to end the dollar “roller coaster.”
On the economy, Cruz said his top priority as president would be to foster growth because a slow economy makes problems unsolvable.
When meaningful tax reform and regulatory reform were instituted in the past, the result has been “record shattering growth,” he said.
As president, Cruz said he’d lift regulatory and tax burdens from small businesses.
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