Ted Cruz: Why a stock 'crash will be coming'
Matthew J. Belvedere | @Matt_BelvedereFriday, 15 Apr 2016 | 10:27 AM ETCNBC.com
The Federal Reserve's excessively easy monetary policies 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 four days before the New York primary, which has 95 delegates at stake.
"But that's not built on anything real. It's not built on an increase in the intrinsic value of those assets," he said. "That's just playing games with money, which means a crash will be coming."
Cruz said Fed policy should not target a strong or a weak dollar. He said the U.S. needs monetary policy stability to end the dollar "roller coaster."
"I think we're far better having a rules-based monetary policy, ideally with some tie to gold, so that you have a stable dollar," he said. "So you know when you're investing a dollar today, you know that the dollar is going to keep a consistent worth."
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