A December interest-rate increase is becoming a stronger possibility as Federal Reserve Governor Christopher Waller signals that policymakers may need to consider raising rates by as much as 50 basis points if inflation remains stubborn.

Bitcoin and stocks slide as October CPI exceeds market forecasts

U.S. inflation eased slightly in October compared with the previous month’s reading, but the decline was smaller than economists had expected. The latest figures remained above the Federal Reserve’s 2% target, reinforcing concerns that policymakers could tighten monetary policy again at their final meeting of the year.

According to the latest data, the Consumer Price Index increased 0.4% in October, down from September’s 0.6% rise. However, the figure exceeded the 0.3% increase projected by economists.

Core CPI, which excludes food and energy costs, advanced 0.3%, matching September’s reading. The result was also higher than the 0.2% gain expected by the market.

The Bureau of Labor Statistics (BLS) did not report the year-over-year inflation figure because the October 2025 CPI report was not released during the government shutdown.

The hotter-than-expected figures triggered additional pressure across financial markets. Bitcoin extended its losses by approximately 1%, falling toward $73,600. U.S. stock futures also weakened, with Nasdaq 100 futures dropping 1.15% and S&P 500 futures declining 0.5%.

Treasury yields had moved higher even before the CPI announcement as investors assessed Waller’s latest comments. The Fed governor indicated that he would support a December rate increase even if inflation had cooled in October. He further suggested that a 50-basis-point adjustment could be justified if the latest inflation figures came in stronger than anticipated.

Following the release, the 10-year Treasury yield increased 6.5 basis points to 4.93%. The two-year yield recorded a larger jump of 14 basis points to 4.69%, as traders began factoring in a small possibility of a half-percentage-point rate increase next month.

Anthropic reportedly targets $1.4 trillion valuation for IPO

Anthropic is reportedly pursuing a fully diluted valuation of approximately $1.4 trillion as it prepares for a potential stock market debut, Bloomberg reported.

The artificial intelligence company is offering shares within an indicative range of $70 to $78. At the higher end, the proposed pricing would imply a market capitalization of approximately $1 trillion. The fully diluted valuation additionally accounts for employee stock options, restricted shares and equity reserved for charitable matching.

The IPO, combined with a private placement, could raise around $90.4 billion. The figure could approach $100 billion if the company exercises its over-allotment option.

Anthropic withdraws preliminary IPO figures after $69.3 billion fundraising estimate

Anthropic has withdrawn preliminary IPO pricing information that was previously circulated among investment bankers, following reports that the proposed offering could generate up to $69.3 billion, according to Reuters.

The preliminary proposal reportedly involved approximately 867 million shares priced between $70 and $80 each.

The company said the information was inaccurate and confirmed that an updated filing would be provided. However, it did not identify the specific errors, leaving the proposed share count, pricing range and overall fundraising target uncertain.

Bitcoin and gold weaken as markets raise December rate-hike expectations

Investors increased their expectations of another Federal Reserve rate increase ahead of Tuesday’s U.S. inflation report. Market pricing pointed toward a potential 25-basis-point adjustment on December 9, which would lift the federal funds target range to 4.00%-4.25%.

Waller’s remarks added to concerns about further monetary tightening. He indicated that a December increase remained appropriate even if inflation had moderated, while warning that stronger price pressures could justify a 50-basis-point move.

The prospect of higher borrowing costs weighed on cryptocurrency and precious metals. Bitcoin and gold both declined by slightly more than 1%, with BTC trading near $74,000 and gold falling below $4,100 per ounce.

Meanwhile, Nasdaq 100 futures moved lower following Monday’s rally, while the U.S. dollar index remained relatively strong below the 102 level.