Federal Reserve officials are reassessing whether gradual rate increases can contain inflation that has become broader and more persistent. Chicago Fed President Austan Goolsbee called the data borderline disturbing, while Governor Christopher Waller raised the prospect of a larger increase next month. Markets see a December rate hike as virtually certain and now price two additional quarter-point increases by June, pushing the two-year Treasury yield 17 basis points higher Tuesday and the 10-year yield above 5%. Measures of underlying inflation also strengthened: the Cleveland Fed's trimmed-mean CPI rose 0.4% in October, the Atlanta Fed's sticky-price CPI reached a 4.7% annualized pace, and more than three-quarters of the consumer basket rose at an annualized rate above 2%. Cleveland Fed President Beth Hammack continues to support gradual increases and dissented from last month's decision to hold the benchmark rate at 3.75% to 4%, while warning that sharper moves could disrupt the economy. Rising yields, weaker technology stocks and a stronger dollar are already tightening financial conditions. Tariffs and the Iran war remain potential sources of persistent inflation, with President Trump threatening higher tariffs on Mexican imports and saying the U.S. does not need a deal with Iran.