According to The Kobeissi Letter, US long-term inflation expectations have surged to 3.9%, marking the highest level since 1993. One-year inflation expectations have risen to 4.9%. This shift in expectations suggests consumers anticipate worsening economic conditions and may lead to increased borrowing. The Federal Reserve has described tariff-induced inflation as 'transitory', but traders should consider the potential for elevated inflation to influence interest rate decisions and borrowing costs.