The central bank is also expected to announce plans to begin unwinding its $4.2 trillion portfolio of Treasuries and mortgage-backed securities, almost a decade after the global financial crisis.
The Bank of Japan holds its regular policy meeting on Thursday with many expecting no change in its monetary policy stance.
USA stocks were little changed in morning trading on Tuesday as investors avoided taking major bets ahead of the two-day Federal Reserve meeting that is expected to roll out a plan to pare the central bank's bond holdings.
United States stocks closed higher on Monday (Sept 18) as investors looked ahead to a key Federal Reserve meeting.
At 9:39 a.m. ET (1339 GMT), the Dow Jones Industrial Average was up 33.52 points, or 0.15 percent, at 22,301.86, the S&P 500 was up 4.44 points, or 0.17 percent, at 2,504.67 and the Nasdaq Composite was up 18.27 points, or 0.28 percent, at 6,466.74. On Friday, the Dow industrials logged a fourth-straight record close (http://www.marketwatch.com/story/dow-futures-steady-paring-losses-that-came-after-latest-north-korean-missile-2017-09-15) and a sixth-straight gain.
The S&P 500 ended slightly higher on Monday as financial stocks rose ahead of a Federal Reserve meeting, but the Nasdaq pared gains sharply as technology stocks lost ground late in the session. The tech-heavy Nasdaq rose 0.3 percent to 6,465.75. Miners Rio Tinto and Fortescue Metals Group eked out modest gains as aluminum and copper prices strengthened. Wellard shares soared 16 percent as the country's biggest cattle exporter agreed terms for its first shipment of beef cattle to China. Copper added 2 cents to $2.97 a pound. London's FTSE 100 added 0.5 percent.
Solvay dropped 1.4 percent.
Data showed US homebuilding fell for a second straight month in August as a rebound in the construction of single-family houses was offset by weakness in the multifamily home segment.
In other economic news, housing starts declined by 0.8% to a seasonally adjusted rate of 1.18 million in August.
A separate report released by the Labor Department showed increases in USA import and export prices in the month of August.
Bob Evans Farms rose about 6 percent after packaged foods company Post Holdings said it would buy the frozen meals maker for about $1.5 billion. Commerce also releases second-quarter current account balance numbers at 8:30, and the Labor Department delivers August import/export price data. Economists had expected import prices to rise by 0.4 percent. Export prices had been expected to edge up by 0.2 percent.
In Europe, Germany's DAX rose 0.3 percent, while France's CAC 40 gained 0.3 percent.