Recession Odds 2026 (Prediction Market + Indicators)

What the market is pricing for a US recession, next to the two official indicators economists watch most: the yield-curve spread and the Sahm rule unemployment trigger.

88%implied recession odds
+1.0 ptslast 24h
Next FOMC decisionJul 29
Updated Jul 21, 1:03 PM UTC

Prediction market says

88%

No: US recession by end of 2026?

Polymarket

The official data

10Y minus 2Y Treasury spread0.39%
FRED T10Y2Yas of Jul 2026
Sahm rule recession indicator0.07 pp
FRED SAHMREALTIMEas of Jun 2026

US recession by end of 2026?

OutcomeImplied %Trade
No88%Bet
Yes12%Bet

Reading the indicators

A negative 10-year minus 2-year spread (an inverted curve) has preceded most modern recessions. The Sahm rule flags a likely recession when the unemployment rate's three-month average rises half a point above its prior-year low.

Neither is a guarantee. The prediction-market price is the market's all-things-considered probability on top of these signals.

FAQ

What counts as a recession here?

The Polymarket market defines the exact resolution criteria (often an NBER call or two negative GDP quarters). Check the market page for its specific terms.