Economist Edward Dowd, former BlackRock manager, is warning that a market correction expected in October could benefit President Donald Trump in the upcoming election. During an appearance on Steve Bannon’s War Room, Dowd discussed the current state of the economy and raised concerns about government manipulation of economic data.
Dowd criticized Treasury Secretary Janet Yellen’s recent claims that there are no warning signs in the economy, likening her comments to those made before the 2008 financial crisis. He pointed to a massive revision of employment numbers, which showed 850,000 fewer jobs than previously reported, as evidence of fraudulent data.
Dowd explained that while the government has used increased spending and Federal Reserve loans to delay a recession, these measures have only postponed the inevitable. He predicted a significant market correction in October, as investors hold off on major moves until after the election.
This financial downturn, according to Dowd, will likely hurt the Biden-Harris administration and shift momentum toward Trump. As the truth about the economy comes to light, voters may reconsider their support for the current administration, Dowd suggested.
With election day fast approaching, Dowd’s predictions of a market correction could play a crucial role in shaping the outcome of the race.
