WASHINGTON – President Donald Trump said Wednesday he is not considering tax cuts to help stimulate the economy, just one day after saying his administration was looking at a temporary reduction in payroll taxes and other proposals amid fears of a recession.

“I’m not looking at a tax cut now,” Trump told reporters at the White House as he was leaving for an event in Louisville, Ky. “We don’t need it.”

Trump insisted the economy is doing “very, very well” despite warnings from private economists about the threat of a U.S. recession. He again attacked Federal Reserve Chairman Jerome Powell for failing to go along with his demand for lower interest rates.

“The Federal Reserve has let us down,” he said.

Trump’s reversal on tax cuts comes just hours after he told reporters the White House is looking at "various tax deductions," including indexing capital gains taxes to inflation and temporarily cutting payroll taxes.

Though Trump has repeatedly insisted the economy is strong, senior White House officials already have started preparing a contingency plan, including a temporary payroll tax cut, to put more money in workers' paychecks and boost growth.

Trump, however, backtracked Wednesday on a tax-cut package.

Indexing capital gains to inflation would probably be better for upper income groups, he said, “but I’m not looking to do that.”

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Private economists are warning there are signs of a possible recession on the horizon, pointing to trade tensions between the U.S. and China, weaker growth abroad and yields on 10-year Treasury bonds that dipped below two-year Treasury rates last week, a phenomenon known as an inverted yield curve.

It's the first time that has happened since 2007 and could indicate investors have lost faith in the soundness of the U.S. economy.

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