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President Trump this Tuesday confirmed that 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.

The other day, The Washington Post ran an headline claiming it was being considered as the result of a “weakening economy.” But the Hill confirmed otherwise, and VP Pence confirmed that Household Incomes are consistently rising.

“I’ve been thinking about payroll taxes for a long time. Many people would like to see that,” Trump told reporters in the Oval Office during a meeting with the Romanian president.

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

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.

The president has sought to cast blame on the media for stoking speculation of a recession, and on Tuesday he reiterated his suggestion that the Federal Reserve was holding back the economy and should cut interest rates by a full percent “over a period of time.” Read more at The Hill

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