Trump says he won't actually cut taxes after all

One day after saying the White House was considering new tax cuts to boost the economy, President Trump reversed course, telling reporters he isn't contemplating reducing capital gains or payroll taxes.

"I just don't see any reason to," he said Wednesday. "We don't need it. We have a strong economy." Trump and his aides have been pushing this narrative, saying there is no recession in sight and dismissing warning signs like an inverted yield curve last week and the growth in economic output dropping to a 2.1 percent annual rate in the second quarter, well below the 3.1 percent growth rate in the first three months of 2019.

Trump's announcement on Tuesday that he was interested in tax cuts came as a surprise to several White House staffers who told The Wall Street Journal they haven't been considering any of Trump's ideas. "The president threw it out ... but he was just throwing things out," one official said regarding payroll tax cuts.

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Trump has been urging the Federal Reserve to cut interest rates quickly, which the Journal notes is usually done when the economy is struggling. He's bashed Fed Chairman Jerome Powell on several occasions, accusing him of holding U.S. growth back, and on Wednesday, the president compared Powell to "a golfer who can't putt."