The dollar strengthened after October U.S. inflation exceeded expectations and Federal Reserve Governor Christopher Waller said a 50-basis-point increase should be considered at the Fed’s December 8-9 meeting if core inflation rose 0.3% or more. Dallas Fed President Lorie Logan also said policy may need to tighten further before the central bank pauses. Headline consumer prices rose 0.4% month over month in October, down from 0.6% in September, while core CPI increased 0.3% for a third consecutive month against economists’ 0.2% forecast. The probability of a half-point move rose to about 15%, while a quarter-point increase was widely expected. Treasury yields surged, with the two-year yield recording its largest increase since early April 2025. The euro fell below $1.12, gold dropped below $4,060 an ounce and Newmont shares declined 3.26% to $121.08. The report also pointed to rising auto insurance, public transportation and medical-services costs, while lower used-car, beverage and coffee prices partly offset increases in new vehicles. The inflation data followed midterm elections dominated by cost-of-living concerns. Inflation Insights President Omair Sharif said the data put October core PCE inflation on track for a 0.34% monthly increase, equivalent to a pace above 4% annualized.