Bond investors are worried: The 2-year breakeven inflation rate has jumped to 3.27%, the highest since the March 2023 Banking Crisis. In other words, the market expects inflation to exceed 3.0% over the next 2 years. The 2-year inflation breakeven has more than DOUBLED since the "Fed pivot" of September 2024. This all comes as long-term inflation expectations have risen to 4.1%, the highest since 1993. Americans’ 1-year inflation expectations have surged from 2.6% to 5.0% in under 3 months, reaching their highest level since November 2022. A recession is becoming more likely.