'You've got to watch your step with him.'
'What are you inferring?'
This is a typical error- the second speaker should use 'implying' as the first speaker is trying to say something about the man. The first speaker is implying that there's something dangerous, etc, about the man. The second speaker, who is receiving and processing the information, is inferring.:
'You've got to watch your step with him.'
'What are you implying?'
