US President Donald Trump says the word recession is inappropriate. (File photo)

US President Donald Trump played down fears on Tuesday that the United States was heading towards recession while confirming that his administration was considering a payroll tax cut.

"I think the word recession is inappropriate," Trump said told reporters in the White House as he hosted his Romanian counterpart Klaus Iohannis.

"We're very far from recession."

After US newspapers reported that a temporary cut to the payroll tax was being mulled as part of a package of measures to stimulate the economy, Trump acknowledged that it was one of the options being discussed.

"Payroll tax is something we're ... thinking about," he said.