0348 GMT - The Federal Reserve could increase interest rates two more times--once this year and again in early 2027--in the current interest-rate cycle, says DBS Group Research's Taimur Baig in a note. The Fed's unanimous decision to raise its rates in September sets the stage for more hikes ahead, the chief economist says. "While inflation may be largely supply-side driven, there are enough risks to the inflation outlook to warrant more action," he adds. He notes Fed Chairman Warsh has pointed out that the pace of inflation falling to the 2% target isn't satisfactory yet and short-term interest rates remain the key tool to deal with the Fed's mandate. Baig therefore expects the terminal rate of this cycle to reach 4.5%.
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