Economist Edward Dowd, a former BlackRock manager and founder of Phinance Technologies, warned of an impending market correction in October, which he believes will benefit President Donald Trump in the November election. Dowd made these predictions during an appearance on Steve Bannon’s War Room, where he discussed economic indicators and the potential for a financial downturn as the election nears.

Dowd compared recent government statements about the economy to the pre-2008 financial crisis. He highlighted a comment by Treasury Secretary Janet Yellen, who recently downplayed any serious economic threats, much like the reassurances given before the 2008 crash. “It’s like the same vibes right before the rug pull financially is going to happen,” Dowd said, warning that the government is misleading the public with false economic data, especially regarding employment.

One of Dowd’s concerns is the government’s manipulation of job numbers, which saw a significant revision of 850,000 fewer jobs than initially reported for 2023. He explained that the Federal Reserve’s interventions, including lending money to struggling banks and increasing government spending, have temporarily propped up the economy. However, he argues that these measures have only delayed the inevitable economic downturn, which has been worsening since March.

Dowd believes that this looming market correction will occur in October, just weeks before the election. He noted that business investment has been halted, with many Wall Street investors sitting on the sidelines, waiting to see who will win the election before making any moves. According to Dowd, this economic uncertainty, combined with a likely financial downturn, will work in Trump’s favor.

With a volatile market and what he calls “fraudulent” government data being exposed, Dowd argues that the truth about the economy will become clear, leading to a shift that could impact the election.