Might mean (unverified): Reach the maximum limit possible.
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We found one dictionary that defines the word peg the needle:

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  1. peg the needle: Wiktionary

Definitions from Wiktionary (peg the needle)

verb:  To cause the hand of a dial indicator to reach the highest measurement, due to reaching the maximum measurable speed, pressure, etc.
verb:  (idiomatic) To achieve the maximum level of something, to max out, to pull out all the stops.

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