Bank of America Global Research now sees a scope for a pause at the FOMC September meeting. 

"A pause at 1.75-2% in the Sept FOMC meeting could become more likely if financial conditions worsen and data soften. The market still prices a small chance of a 50bp hike in Sept, which provides an attractive level to receive Sept FOMC OIS," BofA notes. 

"Sept pause is consistent with a risk-management approach as downside risks take on a higher weight at normal policy levels," BofA adds.