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8/20, 8:23 PM (Source: TeleTrader)
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Trump hints at payroll tax cut, tells Fed to lower rates

After the White House dismissed on Tuesday the speculation in the news that it is considering the possibility to slash payroll taxes, United States President Donald Trump told reporters that the administration is "always looking" at the tool and that he has been thinking about it "for a long time." The funds are used for Medicare and Social Security. While unnamed insiders have indicated the government is planning to counter an economic slowdown, Trump today repeated that recession is "very far" but he still urged the Federal Reserve to be "proactive" and to lower borrowing costs by "a minimum" of 100 basis points "over time."

The president claimed he is only "thinking about" fiscal relief and that "various" options are on the table including indexation of the capital gains tax to inflation. As for interest rates, the central bank should have lowered them "long ago." The Federal Open Market Committee cut the benchmark this month for the first time since 2008.

Trump reiterated that he is "not ready" to make a bilateral trade arrangement with China unlike the decision makers in Beijing and estimated that "something will happen" sooner or later.

Breaking the News / IT