The Fed has been "misleading" investors on wanting a strong dollar, Faber said, as it kept lowering the interest rates. "When it comes to action, they show no concern about inflation."
He also blamed the central bank for forcing investors to abandon safe deposits in banks for riskier strategies by keeping rates so low.
"The Federal Reserve is the greatest speculator—they force people to speculate," he said.
"I think they should have stopped cutting rates at say 4 percent … you could stop cutting rates and pursue a tight monetary policy. You can take other measures, mop up liquidity," Faber added.
There's a video of the entire interview at the title link.