Two top Federal Reserve officials could dissent from the central bank’s likely decision Wednesday to hold its key interest rate steady, a sign of division reflecting the economy's muddy outlook as well as the jockeying to replace Chair Jerome Powell when his term ends next year.

Under normal circumstances, a pair of dissents in favor of a rate cut would be taken as a sign the Fed is taking a dovish turn, Tom Essaye, editor of Sevens Report Research, wrote in a Tuesday note. It would be signal that policymakers are moving in favor of easing, making a reduction at the next meeting a more likely event.

Sweeping changes are coming to the world’s most powerful central bank, President Donald Trump and his top advisers have said — and they’re already starting to make good on that promise.

The Fed’s favored inflation gauge, from the personal consumption expenditures basket, is due for release on Friday, and the annual core rate excluding food and energy is expected to be 2.7 per cent - the same as last month.

"It's very important that we maintain our independence with respect to monetary policy," Michelle Bowman, vice chair for supervision at the Federal Reserve, said on Tuesday during a broadcast interview.

The dollar hit a one-month high versus the euro on Tuesday in the wake of a string of trade agreements between the United States and its major trade partners, while markets await interest rate decisions from the Federal Reserve and the Bank of Japan.

The upcoming Federal Reserve meeting is under the spotlight as potential dissent looms from governors Christopher Waller and Michelle Bowman. Their stance aligns with former President Trump's call for interest rate cuts,