Daily Market Mispricings: 2 Events Where We Disagree With Polymarket — May 6, 2026

TL;DRNaly's clearest disagreements with Polymarket on May 6, 2026 are Jerome Powell out as Fed chair by May 15, priced at 32c YES versus our 60c fair price, and a US-Iran diplomatic meeting by May 31, priced at 38c YES versus our 62c fair price. The sharpest reason is contract mechanics: both markets need less than traders seem to think, while the official process is already moving.

Key Takeaways

Warsh is already through committee and cloture is filed, so the Powell contract is mostly about whether the Senate uses the final four days before May 15 efficiently enough.

The US-Iran contract only needs one qualifying diplomatic meeting, not a final peace deal, and Pakistan is already carrying live proposals between both sides.

In both cases Polymarket looks more anchored to recent friction than to the lower operational bar needed for a YES resolution.

2 Mispricings at a Glance

Event Snapshot

Jerome Powell out as Fed Chair by May 15, 2026?

YES Resolves May 15, 2026 Open Medium-High confidence

Polymarket Top Answer NO 68%

Naly Top Answer YES 60%

Max Payout if Correct +68c

0c 50c $1.00

Polymarket Naly

Why we disagree: The market is overweighting Powell's pro tem fallback and underweighting a Senate process already lined up against a hard term-end date.

Event Snapshot

US x Iran diplomatic meeting by May 31, 2026?

YES Resolves May 31, 2026 Open High confidence

Polymarket Top Answer NO 62%

Naly Top Answer YES 62%

Max Payout if Correct +62c

0c 50c $1.00

Polymarket Naly

Why we disagree: Traders seem to be pricing a full breakthrough, but the contract only needs one acknowledged diplomatic meeting and the Pakistan channel is already active.

How to read this: Polymarket Top Answer and Naly Top Answer show the final answer each side sees as most likely. Max Payout if Correct shows the gross upside from the current quote to the $1 settlement if the selected contract side wins. The horizontal graph still shows where that selected side sits on a 0c to $1 range for Polymarket versus Naly.

Event 1

Jerome Powell out as Fed Chair by May 15, 2026?

ForecastContract · YESResolves May 15, 2026OpenMedium-High confidence

+68c

Max Payout if Correct

Polymarket Top Answer NO 68%

Naly Top Answer YES 60%
Trade on Polymarket →

This is an answer flip, not just a confidence tweak. The quoted market price is 32c on the YES side, meaning a trader pays $0.32 now for a $1 binary payout if Powell is out as Fed chair by May 15, 2026 and $0 otherwise. Our separate 60% YES estimate implies a 60c fair price on that same contract. That creates a +28c fair-value edge, while the maximum payout if YES settles is 68c.

Causal Chain

Cause Cause: Warsh is already out of committee and cloture has been filed, so the transition has moved from nomination drama to floor scheduling.

↓

Effect Effect: Once the Senate is on the clock, a clean handoff by May 15 requires process execution more than any new legal or policy breakthrough.

↓

Projection Projection: We think traders are overpricing the pro tem fallback and underpricing the odds that leadership finishes the sequence in time.

Key Factors

| Factor
▲ | AP reported on April 29 that the Senate Banking Committee advanced Kevin Warsh on a 13-11 party-line vote.
▲ | Powell said on April 29 that this was his last press conference as chair and made clear that Warsh becomes chair once he is confirmed and sworn in.
▲ | A published Senate schedule from April 30 shows a May 11 cloture vote on Warsh's Board nomination, with cloture also filed on the chair nomination.
▲ | The hard date matters: Powell's chair term ends on May 15 even if he remains a governor afterward.
▲ | The main bearish fact is still procedural: Powell has already said he can remain chair pro tem if the Senate misses the deadline.

Bayesian Calculation

Base rate: 32% YES from the market's current price on the YES side.

Positive update: Committee approval, filed cloture, and a published May 11 floor schedule make an on-time handoff materially more plausible than a generic nomination would be.

Negative update: Powell can remain chair pro tem, and the Senate still has to clear both the Board and chair nominations through a tight procedural window.

Naly estimate: 60% YES, which maps to a 60c fair price.

Alternative explanation: The cleaner bearish case is that traders are right to focus almost entirely on Senate floor math. If the chamber burns even one extra day on cloture, objections, or unrelated business, Powell can stay chair pro tem and the contract misses even if Warsh still looks likely soon after.

What Would Make Us Wrong

We are wrong if the May 11 cloture sequence slips, if leadership never tees up the chair vote before May 15, or if a renewed procedural fight makes a swearing-in after the deadline the base case.

Fresh Checks

AP: Senate Banking Committee approved Kevin Warsh as the next Fed chair

AP: Powell plans to remain on the Fed board after his chair term ends

Senate Democratic Caucus: schedule for Monday, May 11, 2026

Federal Reserve: Transcript of Chair Powell's Press Conference - April 29, 2026

Event 2

US x Iran diplomatic meeting by May 31, 2026?

GeopoliticsContract · YESResolves May 31, 2026OpenHigh confidence

+62c

Max Payout if Correct

Polymarket Top Answer NO 62%

Naly Top Answer YES 62%
Trade on Polymarket →

This is also an answer flip. The market price is 38c on the YES side, so traders are paying $0.38 for a $1 binary payout if there is a qualifying US-Iran diplomatic meeting by May 31, 2026. Our separate 62% YES estimate implies a 62c fair price on that same contract. That is a +24c fair-value edge, while the maximum payout if YES settles is 62c. The crucial detail is that the contract needs a meeting, not a final deal.

Causal Chain

Cause Cause: Pakistan is still carrying proposals, and both Washington and Tehran keep talking publicly as if a negotiated off-ramp remains open.

↓

Effect Effect: That lowers the logistical hurdle to one acknowledged diplomatic meeting well below the much harder hurdle of a full settlement.

↓

Projection Projection: We think the market is pricing the difficulty of a peace deal, while the contract only asks whether one qualifying meeting happens by May 31.

Key Factors

| Factor
▲ | Reuters reported on April 24 that Witkoff and Kushner were set to head to Islamabad for talks with Iran, with JD Vance on standby if progress warranted it.
▲ | AP reported on May 1 that Iran handed a new proposal to Pakistan mediators and that talks continued even after Trump said he was not satisfied.
▲ | AP reported on May 2 that Iran sent a 14-point proposal via Pakistan in response to a nine-point U.S. proposal.
▲ | Axios reported on May 5 that Trump paused Project Freedom after saying major progress had been made toward a complete and final agreement.
▲ | Polymarket's own rules for this contract count indirect in-person meetings through mediators, which lowers the threshold versus a signed peace accord.
▼ | The main bearish fact is that Trump abruptly canceled the late-April envoy trip, showing the channel is active but fragile.

Bayesian Calculation

Base rate: 38% YES from the market's price on the YES side.

Positive update: There is an active proposal exchange, a willing mediator, and public signaling from both sides that negotiations are still alive.

Negative update: Officials may keep diplomacy indirect or remote, and a public in-person meeting can still be delayed by domestic politics or battlefield volatility.

Naly estimate: 62% YES, which maps to a 62c fair price.

Alternative explanation: The cleaner bearish case is that both governments prefer deniable shuttle diplomacy. If Pakistan keeps carrying papers and calls instead of putting the parties back into an acknowledged in-person format, there can be real progress without a qualifying YES resolution.

What Would Make Us Wrong

We are wrong if the ceasefire deteriorates, if Washington insists on larger concessions before authorizing travel, or if Tehran keeps refusing a public in-person session even while proposals continue to move through mediators.

Fresh Checks

Reuters: Witkoff and Kushner headed to Pakistan for Iran talks

AP: Trump says he's not satisfied with Iran's new peace plan

AP: Trump says he is reviewing a new Iranian proposal to end the war

Axios: Trump pauses Hormuz operation, claims Iran deal progress

Conclusion

As of May 6, 2026, the cleanest watchpoints are the Senate's May 11 cloture sequence for Warsh, any announcement of a final floor vote before May 15, fresh Pakistani or White House signals about in-person Iran talks, and whether the current ceasefire holds long enough to force another acknowledged meeting.

FAQ

Why is the Powell contract still interesting if his chair term ends on May 15?

Because the live question is really about process. Powell has said he can remain chair pro tem if a successor is not confirmed in time, so traders are pricing Senate timing rather than a simple calendar expiration.

Why does Naly still prefer YES on the US-Iran meeting after the late-April trip was canceled?

Because the cancellation showed fragility, not dead diplomacy. Proposals are still moving through Pakistan, public progress language has intensified, and the contract only needs one qualifying meeting rather than a full peace accord.

How does Naly turn a probability into a fair cents price?

On a $1 binary contract, a 60% estimate corresponds to a 60c fair price on the same side. The edge is the gap between that fair price and the current entry price, while max payout if correct is the profit if the contract settles at $1.

Methodology

We start from market-implied priors, then update with official schedules, primary-source reporting, and contract mechanics. This roundup only includes answer-flip setups where our fair price differs materially from the market price. We track calibration and resolved outcomes on /track-record, publish deeper rule notes on /methodology, and keep resolved comparison context on /predictions/scorecard.

Disclaimer

This article reflects probabilistic judgments as of May 6, 2026. It is for informational purposes only and is not financial, legal, or investment advice; prediction-market rules, liquidity, and late headlines can all change outcomes quickly.