Key Insight

The economic conditions heading into the 2026 midterms are historically toxic for the Republican party, and prediction markets are pricing a Democratic House takeover at 85.5% for good reason, but the Senate at just 54.5% reveals meaningful uncertainty about how far the wave extends.

Generated by Claude on Apr 15, 2026

2026 Midterm Elections

Prediction market odds, consumer sentiment, and the economic indicators that historically predict midterm outcomes.

Updated today.

Exclude COVID

Prediction Markets

Democrats Win House (Polymarket)

Prediction market probability that Democrats control the House after the 2026 midterms.

▼ 2.3%

83.5%

Level

YoY Change (bps)

No data
Democrats Win Senate (Polymarket)

Prediction market probability that Democrats control the Senate after the 2026 midterms.

▼ 1.9%

50.5%

Level

YoY Change (bps)

No data
US Recession by EOY (Polymarket)

Prediction market probability of a US recession — recessions devastate the incumbent party at midterms.

▼ 20.0%

24.0%

Level

YoY Change (bps)

No data

Consumer Mood

Consumer Sentiment

University of Michigan consumer sentiment — historically one of the strongest predictors of midterm outcomes.

▼ -2.1% YoY

53.30Index

Trend YoY growth is -2.1%, slowing by 5 bps/year over the last 25Y. Deviations have remained below trend for 15 consecutive periods. Latest: -6.5%, 4.4 pp below trend, a 0.27σ deviation. The latest YoY reading is boosted by 26.1 pp due to an easy comparison base from Mar '25. At current levels, YoY would fall to -12.2% by May '26 as comparisons tighten.

Level

YoY %

y = −0.9% 5 bps/yr · t

Deviation from trend

Regular Gas Price

The most visible price in the economy — voters feel gas prices daily and blame the party in power.

▲ +1.3% YoY

4.12$/gal

Trend YoY growth is +1.3%, slowing by 32 bps/year over the last 25Y. Latest: +31.6%, 30.3 pp above trend, a 2.2σ deviation. The latest YoY reading is boosted by 15.8 pp due to an easy comparison base from Apr '25.

Level

YoY %

y = 9.4% 32 bps/yr · t

Deviation from trend

Economic Conditions

Unemployment Rate

Headline labor market indicator — rising unemployment historically costs the president's party seats.

▼ -0.4% YoY

4.3%

Trend YoY growth is -0.4%, slowing by 2.9 pp/year over the last 25Y. Deviations have remained above trend for 35 consecutive periods. Latest: +0.1%, 46 bps above trend, a 0.26σ deviation. The latest YoY reading is depressed by 63 bps due to an tough comparison base from Mar '25.

Level

YoY Change (bps)

y = 0.4% 3 bps/yr · t

Deviation from trend

CPI Inflation

Year-over-year consumer price inflation — high inflation erodes purchasing power and incumbent support.

▲ +0.1% YoY

3.3%

Trend YoY growth is +0.1%, accelerating by 53 bps/year over the last 24Y. Latest: +0.5%, 46 bps above trend, a 0.20σ deviation. The latest YoY reading is boosted by 1.2 pp due to an easy comparison base from Mar '25.

Level

YoY Change (bps)

y = −0.1% + 1 bps/yr · t

Deviation from trend

Real Disposable Income

Inflation-adjusted income available for spending — captures whether households are actually better off.

▲ +2.5% YoY

$18.1T

Trend YoY growth is +2.5%, accelerating by 1 bps/year over the last 25Y. Deviations have remained below trend for 11 consecutive periods. Latest: +0.4%, 2.1 pp below trend, a 0.51σ deviation.

Level

YoY %

y = 2.4% + 1 bps/yr · t

Deviation from trend