While continuing to publicly downplay warning signs that the USA economy is barreling toward a recession, the Trump White House is reportedly weighing a number of supposed stimulus measures, including more tax cuts for the rich and large corporations.
"Our economy's incredible", Trump told reporters at the White House Tuesday.
Experts, however, have started to sound alarms about a possible recession or, at the very least, a temporary economic slowdown.
But speaking to reporters, the president said a "payroll tax is something that we think about, and a lot of people would like to see that".
The president has always been urging the U.S. central bank to cut rates to help bolster the economy.
Trump faces something of an inflection point on a USA economy that appears to be showing vulnerabilities after more than 10 years of growth. -China trade war and Germany's own recession warning, plus Britain's Brexit chaos, and suddenly the "R" word has become a regular part of the conversation for hopeful critics of the president. The White House just one day earlier denied a payroll tax cut was under consideration.
"Fears that the trade war will trigger a recession are growing", Goldman Sachs chief economist Jan Hatzius said in a note.
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"I would love to do something on capital gains, we're talking about that, that's a big deal, it goes through congress, [cutting] payroll tax is something that we think about and a lot of people would like to see that, and that very much affects the workers in our country and we have a lot of workers", Trump said.
Any new Trump tax cut plan is not likely to be welcomed on Capitol Hill. The market reaction suggested a recession might be on the horizon and led Trump to delay some of the tariffs that were slated to begin in September, though 25% tariffs are already in place for $250 million in other Chinese goods. "I am doing this whether this is good or bad".
Trump has been talking up the economy in recent days and dismissing recession fears.
A survey by the National Association for Business Economics on Monday showed that 72 percent of economists believe there'll be a downturn before the end of 2021, with about half of them predicting the recession for 2020, in time for Trump's reelection battle.
There has been no clarity on how such a move would be carried out since China does not pay tariffs directly to the U.S. Treasury.
Treasury Department officials are skeptical that this can be done without Congress and are concerned it could face legal challenges.
The Fed recently lowered interest rates for the first time since the 2008 global financial crisis, amid rising concerns over trade tensions, a slowing global economy and muted inflation pressures.