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Surveillance: The Election Isn't Going to Be Stolen, Winik Says

bloomberg-surveillance-podcast economics-business-work Apr 11, 2026 source →
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economics-business-work
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Surveillance: The Election Isn't Going to Be Stolen, Winik S

Claims from this story

Every atomic assertion extracted from the underlying record, ranked by evidence strength.

Jay Winnick believes American democracy is strong and will come together again.

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The election is not going to be stolen.

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The Federal Reserve will likely move rates again in December, assuming no shockingly weak payroll reports.

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Inflation expectations have been higher recently.

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Credit markets are more stable now compared to last December.

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Shake Shack's average store sales are north of $5 million.

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Restaurant sales have clearly decelerated in the back half of this year, beginning in the second quarter.

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The Federal Reserve desperately wants to move short rates up.

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The Federal Reserve was dissuaded from raising rates earlier this year due to financial market instability in January and mid-February.

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The Federal Reserve was dissuaded from raising rates earlier this year due to soft macro data.

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Job growth is occurring, but the unemployment rate has leveled off.

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Janet Yellen's slack-based Phillips curve model suggests the economy is growing at potential, requiring more information before rate hikes.

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Credit markets were weakening dramatically before last December's rate rise.

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Inflation expectations were slumping last December.

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The Federal Reserve has been involved in a learning process this year.

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The Federal Reserve committee ended up doing a lot less than they had signaled at the beginning of the year, which was for four rate rises.

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Not following through on initial rate hike signals allowed stability to return to markets.

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Michael Darda would not move rates in December because nominal growth is still slow.

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The Q3 GDP report was inflated by inventories and trade.

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Excluding inventories and trade, nominal GDP is only annualizing at 3%.

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3% nominal GDP is the minimum needed to generate on-target inflation, even with weak productivity statistics.

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The TIP spread is moving up but is still way below a level consistent with the Federal Reserve's inflation target.

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The Bank of Japan's learning process may be going in reverse gear.

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Inflation expectations in Japan went from zero or sub-zero up to 1.5% from 2013 to 2015.

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Nominal growth and inflation both improved in Japan from 2013 to 2015.

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Japanese inflation expectations have faltered back to zero this year.

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Investors interpret the Bank of Japan's move to negative deposit rates and yield curve actions as a sign that the BOJ is effectively throwing in the towel.

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The argument for changing inflation targets is that a very low growth backdrop leads to hitting zero on short rates more frequently.

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Two ways to address frequently hitting zero on short rates are negative deposit rates or a higher inflation target.

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Negative deposit rates have not been popular from a PR perspective in parts of Europe and Japan.

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Federal Reserve President Williams was the first to address the prospects for nominal GDP level targeting or higher inflation targets.

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Japan raised rates once in 2000, which was followed by a deflationary recession.

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Japan raised rates twice in 2006 and 2007, which was followed by a deflationary recession and a return to zero rates.

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Japan ran huge fiscal deficits in the late 1990s but still failed to get off the zero lower bound.

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A decision to raise rates will result in slower nominal growth and lower inflation compared to not tightening monetary policy.

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Normalizing discount rates implies also assuming a normalization on nominal GDP growth.

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Normalizing nominal GDP growth does not appear likely due to weak productivity statistics, demographic headwinds, and the Federal Reserve undershooting its inflation target.

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The Federal Reserve could easily trigger a recession and a spike in volatility by not moving interest rates up very much.

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The ECB raised rates by 50 basis points in 2011 at the wrong time, which was a huge mistake that caused markets to crash and the business cycle to roll over.

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Demand-side fiscal stimulus will only result in the Federal Reserve tightening more if the Fed is comfortable with the business cycle.

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Fiscal policy could significantly help on the supply side through incentives for growth, efficiency, and productive potential.

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Supply-side fiscal policy includes reforms to taxation, regulation, immigration, and education aimed at economic efficiency.

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Janet Yellen's speech called for thinking about running the economy at a higher pressure.

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Yellen's suggestion that a high-pressure economy could help the supply side is controversial.

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The consensus view is that the supply side has nothing to do with monetary policy.

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Yellen's speech was misinterpreted as a commitment to conduct policy, but it was presented as a question for research.

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A December rate rise is not consistent with the Federal Reserve being intent on running a 'hot' economy.

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The fourth quarter of last year and the first quarter of this year were very strong for restaurant sales in aggregate.

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2015 was one of the strongest years ever for restaurant sales.

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The consumer has 'stepped down' this year.

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Fast food sales, as seen by McDonald's, have slowed.

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The casual dining industry has been slow for a number of years and has stepped down further.

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McDonald's is in the middle of a long-term turnaround.

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McDonald's had success late last year with all-day breakfast and some value offerings.

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McDonald's sales began to decelerate this year.

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Four-wall EBITDA refers to the cash flow a restaurant generates at the store level.

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Shake Shack produces restaurant-level margins of about 30%.

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The average restaurant achieves about 20% cash flow margin.

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The scarcity of growth has led investors to overpay for growth, meaning great fundamentals do not always translate into great stocks.

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Wingstop has 50% unit potential remaining for growth.

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