Renowned hedge fund manager Stanley Druckenmiller believes the Federal Reserve has created a type of bubble that won't end well.

A frequent Fed critic, the head of Duquesne Capital said the central bank has created a bubble of short-term investing through its near zero interest rates and quantitative easing.

On the heels of the financial crisis, the Fed cut its target rate to near zero and conducted three rounds of money printing during which it expanded its balance sheet to $4.5 trillion.