Trump Considers New Tax Cut for Middle Class, Blasts Fed After Investors Rattled by Recession Fears

President Trump is saying the economy is strong, but he thinks it could be stronger.

White House officials are discussing further actions to spur the economy, including a cut in the payroll tax to help the middle class.

Right now millions of Americans pay a 6.2% payroll tax on their earnings. That tax was last cut in 2011 and 2012 by about two percent. To put things into persepctive, a person who made $50,000 could get an extra $83 bucks a month back.

Cutting payroll taxes may help the middle class, but critics say they could harm the viability of safety net programs they fund, like Social Security, adding to the federal deficit in the process.

But talks are in the early stages and additional tax cuts are still on the agenda for discussion.

And after investors were rattled last week by fears about a possible recession on the horizon, the president is criticizing Federal Reserve Chairman Jerome Powell, calling him 'clueless' and lacking in vision. 

"We should easily be reaping big Rewards & Gains, but the Fed is holding us back. We will Win!"

We are winning, big time, against China. Companies & jobs are fleeing. Prices to us have not gone up, and in some cases, have come down. China is not our problem, though Hong Kong is not helping. Our problem is with the Fed. Raised too much & too fast. Now too slow to cut....

— Donald J. Trump (@realDonaldTrump) August 14, 2019

President Trump called on the Federal Reserve to lower interest rates by a full point.

"We're doing tremendously well. Our consumers are rich, I gave a tremendous tax cut, and they're loaded up with money. I think I could be helped out by the Fed. But the Fed doesn't like helping me too much," the president tweeted.

Our Economy is very strong, despite the horrendous lack of vision by Jay Powell and the Fed, but the Democrats are trying to “will” the Economy to be bad for purposes of the 2020 Election. Very Selfish! Our dollar is so strong that it is sadly hurting other parts of the world...

— Donald J. Trump (@realDonaldTrump) August 19, 2019

.....The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well. If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!

— Donald J. Trump (@realDonaldTrump) August 19, 2019

A survey by the National Association for Business Economics (NABE) shows 75 percent of economists believe there will be a recession by 2021. 

The poll requested panelists' opinions on the impacts from the president's comments. 

Fifty-five percent believe the president's remarks do not influence the Fed's decisions but do jeopardize the public's trust in the bank. 

Twenty-seven percent suggest the president's comments cause the bank to be more amicable, and seven percent see Trump's remarks in a more positive light.

Still, the majority of respondents believe such comments encourage public debate and serve as a check on the central bank's decisions.