DBS Group chief economist Taimur Baig says the Fed could raise rates two more
times in this cycle — once later this year and once in early 2027. He adds the
Fed’s unanimous September hike paved the way for further tightening. While
inflation appears largely supply-driven, Baig warns upside risks to the
inflation outlook could prompt additional action; he cites Fed chair Kevin
Warsh’s view that the pace of disinflation toward the 2% target is
unsatisfactory and that short-term rates remain the Fed’s primary tool. Baig
pegs the cycle terminal rate at 4.5%.
