President Trump Donald John TrumpFederal prosecutor speaks out, says Barr 'has brought shame' on Justice Dept. Former Pence aide: White House staffers discussed Trump refusing to leave office Progressive group buys domain name of Trump's No. 1 Supreme Court pick MORE on Tuesday confirmed the White House is discussing a temporary payroll tax cut as a strategy to boost the economy, even as he maintains the country's economic outlook remains strong.

"Payroll tax is something that we think about, and a lot of people would like to see that,” Trump said Tuesday during an exchange with reporters at the White House.

“We’re looking at various tax reductions. But I’m looking at that all the time anyway,” he added.

ADVERTISEMENT

The president said that the administration is also looking at doing something on the capital gains tax, but cautioned that nothing has been decided. He suggested that he could index the capital gains to inflation unilaterally, though such a move would likely face challenges from Democrats in Congress.

Trump disputed that a recession was looming after reports circulated that the temporary payroll tax cut was being discussed as one way to boost the economy amid anxieties of a looming recession. The White House on Monday and earlier Tuesday denied those reports, and insisted talk of a downturn was overblown.

The Washington Post first reported Monday that the administration was discussing pursuing a payroll tax cut.

People pay payroll taxes in order to finance Social Security and Medicare. Former President Obama had enacted a temporary payroll tax cut during his presidency in an effort to boost the economy.

Cutting those taxes could temporarily help the middle class, but could also increase the deficit and possibly hurt the social safety net programs they fund.

Trump has projected confidence and insisted the U.S. is in a strong economic position, but his calls for an interest rate cut and possible tax cut are moves typically taken to jump-start a sluggish economy.