Ted Cruz: Federal Reserve Is Being Run By Philosopher Kings

He accused the Fed of creating unpredictability in the economy.

Sen. Ted Cruz (R-Texas) brought a little bit of Plato to the Republican debate stage on Tuesday, saying the Federal Reserve system was run by a "series of philosopher kings."

Cruz in part blamed the Fed's policies for causing the 2008 financial crisis.

"Let's be clear, there is a role for the Federal Reserve," he said. "What the Fed is doing now, it is a series of philosopher kings trying to guess what's happening to the economy."

Cruz said he wouldn't bail out a failed big bank. But he didn't say he'd eliminate the Fed. He said he supported rule-based monetary policy for the Fed, which would make its decisions more predictable.

"Instead of adjusting monetary policy according to whims, and getting it wrong over and over again and causing booms and busts, what the Fed should be doing is number one, keeping our money tied to a stable level of gold, and number two, serving as a lender of last resort," Cruz said.

Cruz wasn't the only GOP candidate to mention philosophers Tuesday night. Sen. Marco Rubio (Fla.) said the United States needed "more welders and less philosophers" in the work force.

Cruz in the past said there are philosopher kings on the Supreme Court.

See the latest updates on the GOP debate here.

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