Moderate economic activity, weak business fixed investment and exports, and global uncertainties promoted the Fed to lower the key interest rates, a second since the recession of 2008
The policy statement and updated quarterly forecasts will be released at 2 pm in Washington and Chairman Jerome Powell will brief the press 30 minutes later
Pressure caused by this "supermassive black hole" would seep into the foreign exchange forward, cross-currency basis and Libor-OIS markets, according to the note
A big clue could come from Chairman Jerome Powell when he speaks on Friday at the Kansas City Fed's annual policy retreat in Jackson Hole, Wyoming
The Fed cut rates last month for the first time in a decade and signalled it was open to doing more amid slowing global growth
Trump, speaking to reporters at the White House, said a strong US dollar was hurting American manufacturers
Fed rate cuts in conjunction with additional fiscal stimulus could result in higher inflation - which could spook markets and lead to a nasty unwinding
Financial markets had widely expected the quarter-percentage-point rate cut, which lowered the US central bank's benchmark overnight lending rate to a target range of 2.00% to 2.25%
If the Fed does oblige, there could be a smart rally
The US Federal Reserve held interest rates steady on Wednesday and signaled little appetite to adjust them any time soon
It held its benchmark rate in a target between 2.25 per cent and 2.5 per cent, thus disappointing President Donald Trump, who earlier this week urged the Fed to cut the rate by 1 percentage point.
The Fed's relative predictive advantage versus private economists has declined in recent years as the higher quality and quantity of forecasters makes it harder for anyone, including Fed staff
"It will be interesting to hear the Fedspeak in the next few weeks," said Tannuzzo, deputy global head of fixed income
Why is the Federal Reserve being accused of fueling financial volatility and risking the country's economic well-being?
The central bank is expected to push up interest rates again.
While bullion was weighed down in the second and third quarters by a stronger dollar and rising borrowing costs, the dynamic may now be shifting as doubts build over the Fed's tightening path in 2019
Goldman Sachs said markets 'overstated' the shift by Powell in part because the Fed's outlook for growth and preference for gradual rate hikes remains 'essentially intact'
The lessons of the dot-com crash in 2000 and the global financial crisis in 2008 have exposed the risks of keeping rates too low for too long
US Federal Reserve raised interest rates three times this year and is expected to raise its target again next month, to a range of 2.25% to 2.5%
Meeting minutes set for release at 2 p.m. Wednesday in Washington are unlikely to offer answers, but they may drop a few hints about how officials are thinking