Roubini: If Jobs Number Is Weak, the third round of quantitative easing on Its Way

American economist Nouriel Roubini expressed his pessimistic view about U.S. and explained that he expects a further round of quantitative easing from the Federal Reserve in December. The founder of Roubini Global Economics shared his point of view in an interview for CNBC and added that if today’s jobs number is ok then the Fed can wait to do QE3.

"Yet the economy is weak enough and the unemployment rate weak enough that the Fed is going to do QE3 eventually.", said Roubini.

As he accepted the Democratic Party’s nomination to seek a second term as President, Barak Obama asked for more time to help solve the U.S.’s economic problems. He insisted that the problems of slowing growth are solvable and it is just a matter of time things to go back to normal.

"By the fourth quarter, with the fiscal cliff coming and firms becoming more cautious, capital spending is slowing down and growth will be not even 2 percent," warned Roubini. "Job creation might be around 100,000 or slightly higher for the next few months, but there’s not going to be any significant reduction in the unemployment rate."

He argued that with gross domestic product (GDP) growth of around 1 percent to 2 percent, the fiscal drag may weigh down the economy and predicted growth of close to 2 percent for the third quarter. Roubini believes that it will then slow in the last three months of 2012.

"If you get the fiscal drag as growth slows, you’re close to zero growth next year", he said. "This implies that by December the Fed is going to do a third round of QE3."