Trump bashes Fed's 'lack of vision' as White House reportedly mulls payroll tax cut

By Victor Reklaitis and Greg Robb, MarketWatch

President also blasts Google

President Donald Trump on Monday criticized Federal Reserve Chairman Jerome Powell ahead of the central banker's highly anticipated speech later this week.

In a series of tweets, Trump said the economy was very strong "despite the horrendous lack (https://twitter.com/ realDonaldTrump/status/1163472272612626433?s=20) of vision by Jay Powell." The president repeated his past call (http:// www.marketwatch.com/story/trump-casts-doubt-on-quick-trade-deal-with-china-2019-08-09) for the Fed to slash interest rates by a percentage point to bolster the U.S. and global economy. He urged the Fed (https://twitter.com/ realDonaldTrump/status/1163472273388576768?s=20) to buy bonds and expand its balance sheet, a policy known as quantitative easing.

Powell will speak Friday at 10 a.m. Eastern Time at the central bank's summer retreat at Jackson Hole.

Read more:Investors might be disappointed in Fed's message from Jackson Hole (http://www.marketwatch.com/story/ investors-might-be-disappointed-in-feds-message-from-jackson-hole-2019-08-16)

And see:Fed's Rosengren says cutting rates now would make next recession worse (http://www.marketwatch.com/story/feds- rosengren-says-cutting-interest-rates-now-would-make-next-recession-worse-2019-08-19)

TAX CUT

White House economic advisors are mulling a possible temporary payroll tax cut to boost the economy, according to a Washington Post report (https://www.washingtonpost.com/business/economy/white-house-officials-eyeing-payroll-tax-cut-in- effort-to-reverse-weakening-economy/2019/08/19/4cab28ec-c2bd-11e9-b72f-b31dfaa77212_story.html) late Monday.

The report, based on three officials, said the White House talks are at an early stage. Officials are scrambling for new ideas to give the economy a lift while publicly stressing that fears about a recession are misplaced. No decision had been made on asking Congress to approve the cut. President Obama lowered the payroll tax for two years after the financial crisis.

GOOGLE BASHED

The president claimed in a tweet (https://twitter.com/realDonaldTrump/status/1163478770587721729?s=20) that Alphabet Inc.'s (GOOGL)(GOOGL) Google business manipulated millions of votes in the 2016 election in a way that favored Democratic candidate Hillary Clinton.

Clinton responded (https://twitter.com/HillaryClinton/status/1163532937377320961?s=20) on Twitter that Trump was referring to a "debunked study" that "was based on 21 undecided voters."

-Victor Reklaitis; 415-439-6400; AskNewswires@dowjones.com


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