Although some reports on the U.S. economy suggest it is ready
for normalizing monetary policy, Marc Faber, editor and publisher of the Gloom, Boom & Doom Report, said Thursday to CNBC that the Fed will
have to launch another round of quantitative easing.
"When I look at the whole financial sector … I feel like on the Titanic. We're fighting about deck chairs, which assets are performing best and we're fighting over the best tables in the ballroom, but I think it's best to find your safety boat and ladder because I think the financial sector will implode one day," Fiber said to CNBC.
"All the central banks are so deep in the mud that, in my view, they will continue to essentially buy assets," Faber said.
The lack of affordability in its major cities is one of the most important problems hampering U.S. growth. Many cities in the U.S. and Europe are not affordable
anymore, as the prices have gone up so much.
"What people do is spend money, but they don't go out too often;
they go out once a week or so."
Faber made his remarks a day after the Federal Reserve's Beige Book said economic activity has expanded at a "modest" to "moderate" pace over the past few months.
Meanwhile, the U.S. Labor Department said earlier that the number of U.S. citizens filing new claims for unemployment benefits fell slightly more than expected last week, pointing to labor market resilience despite moderate economic growth.
Initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 276,000 for the week ended May 30.
The report followed data released on Wednesday indicating that the U.S. private sector added 201,000 jobs last month, slightly ahead of expectations for 200,000 indicating that the recovery in the labor market is on track.
The series of positive data added to the view that the Federal Reserve will hike rates earlier.
