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Market Chatter: Trump Mulls Temporary Pause on Gas Tax

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US President Donald Trump said he intends to suspend the federal gasoline tax temporarily to provide economic relief, an initiative he expects to phase out once fuel prices decline, CBS reported on Monday.

"I think it's a great idea," Trump reportedly told CBS over a phone interview. "We're going to take off the gas tax for a period of time, and when gas goes down, we'll let it phase back in."

Trump's proposal to suspend the excise taxes, 18.4 cents/gal on gas and 24.4 cents/gal on diesel, is aimed at reducing the costs for consumers at the pump. However, it requires an act of Congress and is expected to cost the US government about half a billion dollars a week.

In response to' request for comment, the White House referred to the President's remarks made earlier in the day.

Gas prices have soared by over 50% since the outbreak of the Middle East conflict on Feb. 28, hitting a high of $4.52 per gallon on Sunday, the report said, citing American Automobile Association data.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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