Trump touts economy but payroll tax discussion reveals recession fears

Trump Says U.S. `Talking' With China as Kudlow Suggests Timeline

Trump ‘Not Ready’ for China Trade Deal, Dismisses Recession Fears

President Donald Trump is so convinced that his re-election depends on the economy staying strong that the merest hint of recession has sent him into political crisis management mode.

Still, Trump on Monday called on the Federal Reserve to cut interest rates by at least a full percentage point "over a fairly short period of time", saying that would make the U.S. economy even better and would quickly boost the flagging global economy. So far, consumer spending has remained one of the USA economy's bright spots, and White House officials are aware that Trump's reelection chances could hinge on the economy staying strong into next year.

But Mr Trump and top White House officials dismissed concerns that economic growth may be faltering, saying on Sunday they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the US.

A White House official denied to CNN on Monday that the move was under consideration "at this time".

U.S. workers pay payroll taxes on their earnings to finance health insurance, social security, and pensions.

Helping to ease worries over a US recession are stronger-than-expected USA economic data, a slight improvement in U.S.

Speaking to the media before a meeting with Romanian President Klaus Iohannis in the Oval Office, Trump called warnings that the country may be heading into a recession "inappropriate" and noted that a possible cut in payroll taxes was something he had been considering for a long time. The tax was reset to 6.2% in 2013, the Post said.

Mr Trump has been talking up the United States economy in recent days amid growing unease about a potential recession.

"China's [economy] had the worst year they've had in 27 years".

"Consumers are working at higher wages".

Gidley noted that Smith misspoke by saying "Well first of all, it was a payroll tax cut, not a payroll tax, because we are always looking to give people back their hard-earned money, and that's what the conversation was about".

NABE conducted its policy poll as Trump put the Fed under constant attack, demanding more stimulus, but before the central bank cut the benchmark lending rate on July 31. "If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone", Trump wrote. "They want to make a deal with us, but I can tell you I'm not ready to make a deal unless they are going to make the right kind of deal".

USA economists are concerned that Donald Trump's tariffs and higher budget deficits could eventually dampen the economy.

Traders are now pricing in a 100 percent chance of a second reduction, with most expecting another modest 25 basis point cut.

"And the US economic outlook remains strong as well".

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