'Easy Money' Will Help Stocks for Foreseeable Future: Roubini
Producer, CNBC's "Squawk Box"
The "easy money" policy of the Federal Reserve will continue for "as far as the eye can see" and that's going to continue to be good for the U.S. stock market, noted economist Nouriel Roubini told CNBC on Tuesday.
"When you look at the [mixed] economic data, there's a gap between the fact that the markets, rightly so, are buoyant," he said, "because middle of last year central banks had done another massive round of quantitative easing."
"Some of the improvement in the markets is not because growth is picking up ... certainly easy money implies asset inflation," Roubini said.
Nicknamed "Dr. Doom" for predicting hard times ahead of the 2008 fiscal crisis, Roubini said he also sees positives and negatives for the American economy.
"There are some positives in the U.S. this year. You have QE, you have housing, you have the shale gas, you have some recovery in jobs in manufacturing," he explained in a "Squawk Box" interview. "But between the [January] fiscal deal … and probably 'the sequester,' or something similar, we might have a $300 billion fiscal drag this year."
He predicted that sequestration — the process for across-the-board government spending cuts — could technically put the U.S. in a double-dip recession with near-zero growth in the first quarter, following negative growth in the fourth quarter.
(Read More: Why This Is 'Best-Looking' GDP Drop You'll Ever See)
But for this year, he sees economic growth in the 1.6 percent to 1.7 percent range with continued high unemployment.
"[The unemployment rate] is not going to fall to 6.5 percent, which is the trigger for the Fed stopping zero policy rates," said Roubini, co-founder and chairman of Roubini Global Economics.
(Read More: Economy Adds Another 157,000 Jobs; Rate Up to 7.9%)
The Fed has not put a target on when it'll stop quantitative easing, but he added that he thinks it's a jobless rate of 7 percent, which he doesn't see happening this year either.
—By CNBC's Matthew J. Belvedere; Follow him on Twitter @Matt_SquawkCNBC