The question, he said, now becomes: Will the Fed taper in March or June? I don't know now, he added, "they're not tapering for a long time now."
"So that's definitely sort of going to be a push-up to markets," Tepper said in a "Squawk Box" interview. "Generally speaking, markets will go up, [because] my basic belief has been when you have large (quantitative easing), markets go up."
(Read more: Stocks no bargain anymore: Leon Cooperman)
Back in May on "Squawk," Tepper said: "There better be a true [Fed] taper or else you might be back into the last half of 1999." At the time, he added, "Guys that are short, they better have a shovel to get themselves out of the grave."
On Tuesday, the founder and president of Appaloosa Management said: "I don't think you're going to get '1999' because I was talking about not tapering in a world where you didn't have politicians who have nearly lost their minds."