Recent turmoil in the financial market along with drop in inflation has seriously pushed back expectations of a rate hike from FED as early as September.

Here is why some analysts and economists think that it is unlikely in September

Whereas Federal Reserve policy officials are optimistic on growth and confident over US labor market, concern lies with low inflation and latest minutes suggest that FED is quite divided over - where inflation might be headed.

New York FED president, Bill Dudley just provided a hint last night that rate hike in September isn't looking compelling as of now. Which has pushed back implied hike expectation to just about 25%.

Analysts at Commerzbank think, if FED was to hike rates in September, it would have started providing hints by now.

With rate hike expectation pulling back to December, a hike in next meeting would be very surprising and positive for Dollar.

Watch out for latest comments from FED officials at Jackson Hole meeting.