
Economist Edward Dowd, a former BlackRock manager and current founder of Phinance Technologies, warned of a looming market correction expected in October, which he believes could work in favor of President Donald Trump. During an interview on Steve Bannon’s War Room, Dowd discussed various economic issues, pointing to troubling financial indicators that suggest a major downturn is on the horizon.
Dowd expressed concerns over recent comments from Treasury Secretary Janet Yellen, who claimed there were no signs of a financial crisis. He compared Yellen’s reassurances to those given before the 2008 crash, warning that the government is “making up” job numbers and hiding the true state of the economy. He pointed out that a massive revision earlier this year showed 850,000 fewer jobs than previously reported, signaling significant economic issues.
Dowd noted that government spending, immigration, and Federal Reserve interventions have temporarily propped up the economy, but those measures are running out of steam. He predicted a downturn as investors hold back, awaiting the outcome of the November election. According to Dowd, businesses are pausing investments, leading to a “buyer strike” on Wall Street.
As the economic situation worsens, Dowd believes this will benefit Trump. He argued that the Biden-Harris administration cannot continue to hide the reality of the economy much longer, and as the truth comes out, Trump is likely to gain momentum heading into the election.
Dowd’s warning of a market correction, coupled with skepticism over government data, adds another layer of uncertainty to an already tense election year.