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Nouriel Roubini not so gloomy now

Global growth concerns have injected large amounts of volatility throughout financial markets, and have even raised worries about a possible global recession. However, Nouriel Roubini, known by many as "Dr. Doom," says fear not.

"We're not going to have a global recession because China is going to be able to avoid a hard landing," the co-founder of financial analysis firm RGE Monitor said Tuesday on CNBC's "Fast Money: Halftime Report."

The Shanghai composite, China's benchmark index, has rebounded nicely since hitting its late-August lows and is now up about 11.5 percent this year.

Nonetheless, Roubini said he expects global growth to be mediocre throughout the world. "Returns for U.S. equities are going to be barely low-single digits."

Shanghai composite in last 3 months

Roubini also said the chances of a U.S. recession are low despite third-quarter GDP coming in below expectations.

"I think the chances of a U.S. recession are very low. To have a U.S. recession, either you have to have a hard landing in China … or you need to have a situation in which the Fed starts hiking too much too soon," he said. "That's unlikely, it's going to be the opposite, or a situation in which it starts hiking too late and the situation starts to get out of control and you have to tighten."

The Federal Reserve has been planning to hike interest rates if the economic data support one. Following the release of the strong October jobs report, the chance of a Fed rate hike in December has risen to about 70 percent, according to the CME Group FedWatch tool.

Still, Roubini said whether or not the central bank moves next month or in March "doesn't matter."

"They said initially they were going to move gradually, now they are saying they're going to move very gradually," he said, adding that "very gradually" means less than the dot plot.

He also said the Fed funds rates by the end of 2016 will rise to 1 percent to 1.25 percent from the current near zero.

Those against a Fed rate hike — including the International Monetary Fund and the World Bank — have said that tighter U.S. monetary policy would be detrimental for emerging market economies. Roubini, however, said the U.S. central bank has "telegraphed" the initial rate hike and would not be too harmful to emerging markets.