The US Federal Reserve looks poised to cut interest rates for a second time on Wednesday to help extend the economic expansion in the face of global weakness, President Donald Trump's trade war with China and geopolitical risks such as the attacks on Saudi Arabia's oil facilities.
The modest rate cut the Fed announced in July - its first in more than a decade - left its benchmark short-term rate in a range of 2 per cent to 2.25 per cent.
It also raised expectations that it would follow with up to three additional quarter-point rate cuts this year.
Most economists have since scaled back their forecasts for further rate cuts this year to one or two beginning on Wednesday.
A resumption of trade talks and a less antagonistic tone between Washington and Beijing have supported that view as well as a belief that oil prices will remain elevated, inflation might be reaching the Fed's target level and that the US economy remains sturdy.
Trump has kept up a stream of public attacks on the central bank's policymaking, including referring to Chairman Jerome Powell as an "enemy" and the Fed's policymakers as "boneheads".
Despite a still-solid job market and brisk spending by consumers, the president has insisted that the Fed slash its benchmark rate aggressively - even to below zero, as the European Central Bank has done - in part to weaken the US dollar and make American exports more competitive.
No one expects the Fed to go anywhere near that far.
Powell has said that the policymakers remain focused on sustaining the expansion and keeping prices stable without regard to any outside pressures.
In addition to announcing its decision on rates, the Fed's policymakers will update their forecasts for economic growth, unemployment, inflation and interest rates over the next three years.
Australian Associated Press