TOTAL VOLUME:
$147.3b
24H VOL:
$160,757,820
24H TRANSACTIONS:
2,798,566,680
OPEN INTEREST:
$1,796,460,506
516,586
Markets across
38,144
events
MATCHED EVENTS:
2,845
PLATFORM COVERAGE:
5
Polymarket:
38%
VS.
Kalshi:
62%
$
This group forecasts the state of the US economy at the end of 2026, specifically focusing on the interplay between unemployment and inflation. The markets assess whether the economy will experience a 'soft landing', 'stagflation', 'overheating', or 'slack' based on these two key indicators.
The unemployment rate is defined as the seasonally adjusted unemployment rate (total unemployed as a percent of the civilian labor force, denoted as U-3) reported by the Bureau of Labor Statistics in the Employment Situation release. The inflation rate is defined as the 12-month percent change in the Consumer Price Index for All Urban Consumers (CPI-U), before seasonal adjustment, as reported by the Bureau of Labor Statistics in the Consumer Price Index release. This market will resolve according to the unemployment rate and the inflation rate published for December 2026. If either the December 2026 inflation rate or the December 2026 unemployment rate is not published by January 31, 2027, 11:59 PM ET, this market will resolve based on the most recently published available value of the rate for a month prior to December 2026. This market will resolve to “Soft Landing (Unemployment <5.0%, Inflation <3.5%)” if the unemployment rate is less than 5.0% and the inflation rate is less than 3.5%. This market will resolve to “Stagflation (Unemployment ≥5.0%, Inflation ≥3.5%)” if the unemployment rate is greater than or equal to 5.0% and the inflation rate is greater than or equal to 3.5%. This market will resolve to “Overheating (Unemployment <5.0%, Inflation ≥3.5%)” if the unemployment rate is less than 5.0% and the inflation rate is greater than or equal to 3.5%. This market will resolve to “Slack (Unemployment ≥5.0%, Inflation <3.5%)” if the unemployment rate is greater than or equal to 5.0% and the inflation rate is less than 3.5%. The resolution source for this market will be the Bureau of Labor Statistics, specifically its Employment Situation and Consumer Price Index releases.
Resolution depends on December 2026 data from the Bureau of Labor Statistics for the unemployment rate (U-3) and the Consumer Price Index for All Urban Consumers (CPI-U) 12-month percent change. Stagflation occurs when unemployment is at least 5% and inflation is at least 3.5%. A soft landing is characterized by unemployment below 5% and inflation below 3.5%. Overheating exists when unemployment is below 5% but inflation is at least 3.5%. Slack or disinflation occurs when unemployment is at least 5% but inflation is below 3.5%. The market closes at 8:25 AM on the day of the expected inflation data release for December 2026.
Prediction market odds often offer a different perspective than traditional analyst forecasts. While analysts rely on models and reports, this market reflects the collective wisdom of traders who put their capital at risk based on their beliefs about the future. Currently, the implied probability of Will the US economy be overheating at the end of 2026? is significant, and this differs from some mainstream economic projections. This market can act as a valuable signal, potentially identifying areas where the crowd disagrees with conventional wisdom regarding the US economy in 2026. It’s a real-time assessment of probabilities, not just a point estimate.
Prices on Polymarket and Kalshi can diverge due to several factors. Polymarket and Kalshi can show different implied probabilities for the same outcome because of liquidity, fee structure, participant mix, and how each venue defines the contract. Each platform has a different user base with varying information and risk tolerance, leading to differing opinions. Trading volume also plays a role; higher volume on one platform can lead to more efficient price discovery. Furthermore, slight differences in market rules or liquidity can contribute to price discrepancies. Currently, Polymarket shows a 1.0 difference in probability compared to Kalshi for Will the US economy be overheating at the end of 2026?, reflecting these dynamics. These variations highlight the importance of aggregating data across multiple platforms.
This market resolves around Feb 1, 2027, with the outcome confirmed once the event is verifiable from credible public reporting. The determination will be based on publicly available economic data released by official sources, assessing the overall state of the US economy at that time. The specific indicators considered will be broadly recognized measures of economic health, reflecting a comprehensive assessment of the economic climate. Traders should monitor these key economic indicators as the resolution date approaches to inform their trading decisions.
Several signals or events could significantly impact this market. Unexpected shifts in inflation, interest rate changes by the Federal Reserve, geopolitical events, or major legislative changes could all influence trader sentiment. Stronger or weaker than expected employment reports, GDP growth figures, and consumer spending data will also be closely watched. Any significant economic shock, positive or negative, has the potential to move the odds considerably. Monitoring these factors will be crucial for understanding the evolving predictions about the US economy in 2026.