The U.S. Fed cut rates to a target range of 0 per cent to 0.25 per cent and said it would expand its balance sheet by at least US$700 billion in coming weeks.

By cutting rates, the Fed has tried to counter uncertainties heightened by President Donald Trump's trade conflicts, a weaker global economy and a decline in U.S. manufacturing.

The U.S. Federal Reserve kept its benchmark rate — which influences many consumer and business loans — in a range of 2.25 per cent to 2.5 per cent, where it’s been since December.

U.S. stock markets extended their gains following the Fed's statement, and bond yields dropped.

World stock markets, the U.S. dollar and oil prices tumbled on Tuesday as fears about a slowing global economy gripped investors, just as the U.S. Federal Reserve looks set this week to deliver its fourth interest rate hike of the year.

The White House has notified Federal Reserve Governor Jerome Powell that it will nominate him as the next chair of the central bank.

The Federal Reserve is raising a key interest rate for the first time in a year, reflecting a resilient U.S. economy and expectations of higher inflation. The move will mean modestly higher rates on some loans.

The Federal Reserve left interest rates unchanged Wednesday, six days before Americans choose a new president, but hinted again that it would likely raise rates soon.

The Federal Reserve's rate hike was welcomed in Asia as a sign of strength in the U.S. economy, a major market for the region's exports.