Marc Faber: Forget the economy, the Fed is ‘market dependent’

The market was somewhat spooked by the minutes from the Federal Reserve's April meeting, which suggested that if the economy continues to improve, the central bank will raise interest rates in June. But Marc Faber has an alternative take on what the central bank is up to.

In the minutes released Wednesday, it was recorded that "Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee's 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June."

While Fed officials frequently highlight their data dependency, the minutes surprised market participants who had thought a June hike was out of the question, and the release consequently led to a dip in stocks and a rise in yields on Wednesday afternoon.

Yet Faber, the editor of the Gloom, Boom & Doom Report, questions the Fed's stated reliance on economic data. In fact, to him, gauging the market's reaction to the potential for a June hike was part of the point of the release.

The Fed "said a rate hike is on the table so they can watch the market reaction," Faber said Wednesday on CNBC's "Trading Nation."