The Fed is scheduled to release its latest policy decision at 2 pm EDT (1800 GMT)
Surge in liabilities denominated in US dollars could make the banks' home economies more vulnerable, says IMF report.
The outburst followed the release of the Institute for Supply Management's factory index, which slipped to its lowest level since June 2009
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 Fed's policy-setting Federal Open Market Committee lowered the policy interest rate by 25 basis points to a target range of 1.75 to 2.0 per cent
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
The repo market underpins much of the US financial system, helping to ensure banks have the liquidity to meet their daily operational needs and maintain sufficient reserves
Officials from 26 central banks, including the U.S. Federal Reserve and the Bank of England, will meet with representatives of Libra in Basel on Monday
Goldman sees the US Dollar Index, which fell by as much as 0.5% on Thursday, reaching 99.7 by December
Tweetstorm has become a new way for governments to express disappointment with central banks
President Donald Trump has demanded the Fed cut rates to bolster growth as he piles tariffs on Chinese imports to try to win a better trade deal
Trump has elevated his criticism of the central bank to a shrill level in recent weeks
Most investors were expecting the government to increase spending to shore up economic growth
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 released minutes of its July meeting later on Wednesday, which will provide an insight into its deliberations when cutting interest rates for the first time since the financial crisis
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 said in a Twitter post in which he also lamented that the US dollar is so strong that "it is sadly hurting other parts of the world"
... between a harder forward premium and a sharp decline in the domestic rates
Fed rate cuts in conjunction with additional fiscal stimulus could result in higher inflation - which could spook markets and lead to a nasty unwinding