By: Jeff Cox
CNBC.com Staff Writer
CNBC.com Staff Writer
Federal Reserve policies have put the US dollar the risk of crashing, which will hammer consumers through higher prices, strategist Axel Merk told CNBC.
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Investors should brace for a much weaker dollar [.DXY 76.59 
0.71 (+0.94%) 
] by diversifying out of the greenback and into currencies of other countries, said Merk, chairman and chief investment officer of Merk Investments, of Portland, Maine.
0.71 (+0.94%) ] by diversifying out of the greenback and into currencies of other countries, said Merk, chairman and chief investment officer of Merk Investments, of Portland, Maine.Merk spoke the day after the Fed said it will be embarking on a program to buy $600 billion in Treasurys in an effort to pump up the economy by increasing liquidity. Critics say the program, also known as quantitative easing, will further devalue the dollar and ultimately create inflation.
"It's with the best of intentions but I think it's a very, very wrong policy," Merk said in an interview.
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