Markets will be tuned into the Federal Reserve's announcement on Wednesday afternoon to see if the central bank delivers on a much anticipated third rate cut of the year.
The Federal Reserve concludes its latest two-day policy meeting on Wednesday to set a key USA interest rate that impacts investors, consumers, and companies around the world.
"We believe that monetary policy is in a good place", Fed chairman Jerome Powell said in a news conference after the USA central bank announced its decision to cut its key overnight lending rate by a quarter of a percentage point to a target range of between 1.5 per cent and 1.75 per cent.
The Fed is expected to lower borrowing costs by another quarter of a percentage point to a range of between 1.5% and 1.75%.
He took up the post in February 2018 after being nominated by President Donald Trump, who has since taken to railing against the Fed chief and the central bank for not making deeper rate cuts. Traders also pared wagers on a fourth consecutive rate cut in December.
This could mean that Fed officials will prefer to leave rates alone while they assess how the U.S. economy fares in the months ahead.
"Even though he began his press conference with a list of the things that are going right - American consumer spending is in rude health, GDP is holding up well and USA workers are basking in the lowest jobless rate for five decades - Mr Powell is keen to see off any economic clouds before they darken the horizon".
However, profit growth forecasts for the next four quarters have been revised lower, even as expectations for the decline in third quarter earnings has shrunk to 1.6%, compared with a 2.2% fall at the start of the month. The better-than-expected consumer spending was partly offset by weakness in business investment. He complained on Tuesday that it "doesn't have a clue!" and has called on Powell to slash rates to zero while tweeting favorably about negative rates applied by central banks in Europe and Japan.
The vote for Wednesday's rate cut lends some credence to the phrase's significance.
At the same time, they repeated a references to "uncertainties" in the economic outlook.
"Although household spending has been rising at a strong pace, business fixed investment and exports remain week", the Fed wrote in the statement. "They said they remain open to what the data shows them".
That softness has shown up in data from the manufacturing sector this year, though factory output rose slightly in the third quarter. The October jobs report, set to be released Friday, could shed light on the rate outlook.
Currently, the Fed expects moderate economic growth, a continued strong labour market, and inflation to move back up to its 2 per cent annual target.