David Tepper, head of Appaloosa Management, doubts that the FED will implement QE3 unless markets get considerably worse.

Tepper said in an email to CNBC that stocks would have to fall considerably more before the FED would start another round of printing money, quantitative easing.

If (the S&P 500 falls) a couple hundred points and financial conditions tightened maybe they would reconsider, Tepper wrote. But there is no logic to QE3 now and the only result might be more food and energy inflation.

We (are) in a difficult investment environment, he wrote. Short and Sweet

Tepper predicted last September on CNBC that stocks were in a win-win situation: either the economy would improve and drive a rally, or the economy would drop and the FED would undertake another round of easing. 

Two months later in November, the central bank announced the second round of large asset purchases, better known as QE2.  This helped spark a 27% rally in the S&P.

Suffice it to say that when David Tepper speaks the market listens.

With the end of QE2 at the end of June and many economists, traders, investors discounting another round of quantitative easing, look for US Dollar to emerge with a relief rally before long term deterioration continues.

Read: Goldman: QE3 Optimism is Excessive

Read: Top Economic and Market Forecasters Predict: QE3 Is Coming