Minutes from the latest Federal Open Market Committee meeting showed Fed officials struggles with uncertainty amid recent global turmoil while several expressed concerns that the monetary policy was less well positioned to respond effectively to downside shocks. “Several participants noted that monetary policy was less well positioned to respond effectively to shocks that reduce inflation or real activity than to upside shocks, and that waiting for additional information regarding the underlying strength of economic activity and prospects for inflation before taking the next step to reduce policy accommodation would be prudent,” the Fed said in minutes of the Jan. 26-27 policy meeting. While participants continued to expect that “gradual adjustments in the stance of monetary policy would be appropriate”, they emphasized that the timing and pace of adjustments “will depend on future economic and financial market developments”. Overall the minutes of the January meeting suggested the chances of a raise hike at March 15-16 meeting have already fallen as officials expressed concerns over downside risks to the outlook. “Developments in commodity and financial markets as well as the possibility of a significant weakening of some foreign economies had the potential to further restrain domestic economic activity… Participants judged that the overall implication of these developments for the outlook for domestic economic activity was unclear, but they agreed that uncertainty had increased, and many saw these developments as increasing the downside risks to the outlook", the minutes showed. For more information, read our latest forex news.