Economist Edward Dowd, former BlackRock manager, is predicting a significant market correction in October, which he believes will improve President Donald Trump’s chances in the upcoming election. During an appearance on Steve Bannon’s War Room, Dowd pointed to economic warning signs that are being ignored by the Biden administration.
Dowd criticized Treasury Secretary Janet Yellen, likening her recent comments downplaying economic risks to those made by officials before the 2008 financial crisis. He stated that the government is falsifying job numbers and highlighted a recent 850,000-job revision as evidence that the economy is weaker than reported.
The economist explained that temporary measures, such as increased government spending and Federal Reserve actions, have kept the economy from collapsing sooner. However, those measures are fading, and Dowd expects a significant downturn by October. He also pointed out that immigration, both legal and illegal, has temporarily boosted GDP but cannot sustain growth for much longer.
According to Dowd, Wall Street investors are pausing major decisions until after the election, leading to a lack of confidence in the market. This economic uncertainty, combined with a likely market correction, could boost Trump as voters lose faith in the Biden-Harris administration’s ability to manage the economy.
With election tensions already high, Dowd’s predictions of an October correction could shift the momentum toward Trump as economic realities come into sharper focus.
