Traders expect the Federal Reserve to resume its tightening cycle next week, with a quarter-point increase fully priced in for the first time since early June in US trading Tuesday. The implied interest rate on a swap contract linked to the Fed’s July 26 rate decision briefly rose to 5.33% — a quarter point higher than the 5.08% effective level of the policy rate most days since May 4 — before edging back to a level less than half a basis point lower. Wagers on where the US overnight benchmark rate will peak have been dialed back as signs of slowing inflation mount. But several policy makers in recent days have come ... (full story)