We regularly receive questions regarding weaving rugs on Baby and Mighty Wolf looms. It can be done, but if rug weaving is the majority of your weaving, you may be happier in the long run with a heavier loom. The Standard Floor Loom and the Cranbrook Loom are both good choices for rug weaving.
The Wolf looms were designed to be portable, so they are lighter weight. Rug weaving generally requires a very tightly tensioned warp and heavier beating than other types of weaving. With a Wolf loom, you may find that the loom tends to move when beating a rug. You can work around this by placing weight on the cross brace between the rear legs.
The November/December 1994 issue of Handwoven magazine article “Weaving Rugs on a Lightweight Loom” by Gail Madden has helpful information.