Faber : I don't think the Fed will increase Interest Rates

I personally don't think that the US Fed will increase rates as the economy in the last six months has been relatively weak. There isn't much momentum. Secondly, given the US dollar strength until recently, I don't think that the US Fed would wish to have a stronger dollar.

The US Fed has always remained data dependent. If the data is not so favourable, they are not going to increase rates. Now they may increase rates symbolically, say, by an eighth of a per cent in the hope of gaining some credibility. I think that the economy will continue to be weak, and therefore, no rate increase will happen this year.




Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.