The Financial Post reports in its Wednesday edition that traders believe Federal Reserve chairman Jerome Powell will start raising interest rates again next week. A Bloomberg dispatch to the Post reports that the implied interest rate on the swap contract linked to the Fed's July 26 rate decision rose to 5.33 per cent -- a quarter point higher than the 5.08 per cent effective level of the policy rate most days since May 4. Treasury yields across maturities were down between three to seven basis points, with the policy-sensitive two-year rate hovering near 4.7 per cent. Yields slumped after data showed U.S. retail sales rose by less than forecast, before quickly moving away from session lows as the complete report along with revisions showed still robust consumer spending. Janney Montgomery Scott analyst Guy Lebas says the market believes "a July rate hike is a forgone conclusion." Wagers on where the U.S. overnight benchmark rate will peak have been dialed back as signs of slowing inflation mount. However, several policymakers in recent days have come out with hawkish commentary in the run-up to their next meeting. After July, Mr. Lebas says more hikes look unlikely given inflation has broadly been decelerating.