While the spotlight may have shifted from when the Federal Reserve will taper its asset purchases to the U.S. government shutdown, some analysts are quietly pushing back their taper forecasts, with one arguing it may not come until 2015.
"Tapering is a long way off," said James Gruber, founder of investment newsletter Asia Confidential. He doesn't expect tapering to occur until 2015 at the earliest, noting any moves by the Fed to wind down its $85 billion a month of asset purchases are expected to cause Treasury yields to rise.
"The U.S. can't afford higher interest rates," as higher interest expenses would start to crowd out other government spending, likely requiring harsh spending cuts, he told CNBC. "No countries will opt to do that."
Gruber believes the likely appointment of Janet Yellen as the successor to Ben Bernanke at the helm of the Fed also signals tapering isn't on the cards.
"She's pretty well on record as suggesting that she'd continue Ben Bernanke's policies and I don't believe cutting quantitative easing will be on the agenda if she gets into power," he said.