The Federal Reserve will create a "final crisis" by continuing to print money because it is underestimating the strength of the economy, Marc Faber, the author of "The Gloom, Boom and Doom Report," told CNBC Tuesday.
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And investors who share his bearish view would be better off holding stocks instead of bonds in their portfolios, Faber said.
Analysts have said the Fed will decide to re-start easing monetary policy, possibly by buying assets, as early as Aug. 10 when the next meeting over policy is scheduled.
"Investors should have listened to me already six months ago when I wrote that the Fed will continue to monetize … they will print and print and print until the final crisis wipes out the whole system," Faber said.
Fed Chairman Ben Bernanke has "no clue what the economy is doing," and the Fed "misread in the last few months the strength of the economy," he added.
He sees "significantly more" quantitative easing ahead. A report in the Wall Street Journal said the Fed might decide on buying government bonds or mortgage bonds again. Read more
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