Investors are pricing in no chance of a rate hike this week, but could react to how the Fed's statement interprets recent soft U.S. economic data and events in global financial markets.
Markets are currently pricing in only a modest chance of a tightening in December.
On Wall Street, the Dow .DJI ended on Monday with a minor loss of 0.1 percent, while the S&P 500 .SPX eased 0.2 percent and the Nasdaq .IXIC added 0.1 percent. US stock index futures ESc1 were pointing to a weak start. [.N]
All eyes will be on Apple's (AAPL.O) results later Tuesday with investors anxious to hear how many new phones were sold by the world's most profitable company, and its guidance for the current quarter.
The U.S. dollar lost some of its recent gains following disappointing U.S. new home sales and a dip in Treasury yields. Against a basket of currencies, the dollar was off 0.2 percent at 96.692 .DXY.
The euro regained a little ground to $1.1065 EUR=, having touched an 11-week trough of $1.0987 on Monday. Against the yen, the dollar lapsed back to 120.55 JPY= from Monday's top around 121.51.
Commodity markets continued to be dogged by concerns over plentiful supplies and weak demand. Three-month copper CMCU3 was broadly flat at $5,206 a metric ton.
Crude oil stayed under pressure after two straight weeks of losses, on worries that the oversupply in oil products would swell from unseasonably warm weather and the waning maintenance cycle for U.S. refineries. [O/R]
U.S. crude CLc1 was down a percent at $43.45 a barrel, while Brent LCOc1 eased to $47.17 a barrel.
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