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 Fe

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%.