The Fed, after lifting rates nine times over three years through the end of 2018, reversed course this year and has cut borrowing costs twice — in July and again last month. The Fed's key overnight lending rate is now set in a range of 1.75% to 2.00%, half a percentage point below its recent peak.

But the gulf between U.S. rates and those in Europe and Japan remains very wide, which is among the chief reasons behind the dollar's strength. Earlier on Tuesday, the U.S. dollar index was at its highest in more than two years, although it has retreated sharply in the aftermath of the ISM data.

While Trump wants even more rate cuts from the Fed, it's not clear he will get them anytime soon. Since cutting rates in mid-September, the second of what Powell has described as a "mid-cycle adjustment" to policy, a number of Fed officials have voiced support for holding still for now unless the incoming data grows demonstrably worse.

Chicago Fed President Charles Evans, speaking in Frankfurt on Tuesday, said the U.S. central bank can keep rates as they are for now. Evans was among those who voted in favor of the rate cuts in July and September.

The Fed is due to release its own figures on U.S. manufacturing output for September on Oct. 17.

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