WASHINGTON, Aug 1, 2025 (BSS/AFP) - The two Federal Reserve officials who favored an immediate interest rate cut said Friday that the central bank's decision this week to hold rates steady risked further damaging the economy.

In similar statements outlining their dissents, Federal Reserve Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller argued that the inflationary effects of President Donald Trump's tariffs were temporary and that the central bank should focus on fortifying the economy to avert further economic weakening.

Both Bowman and Waller were appointed by Trump, who has repeatedly lambasted Fed Chair Jerome Powell for not cutting rates.

Putting off an interest rate cut "could result in a deterioration in the labor market and a further slowing in economic growth," said Bowman.

Waller said he believes "the wait and see approach is overly cautious and... does not properly balance the risks to the outlook and could lead to policy falling behind the curve."

Both Waller and Bowman favored a 25 basis point cut at Wednesday's meeting after signaling support for an interest rate cut in public statements in the weeks leading into the meeting.

On Wednesday, the central bank decided to keep interest rates at a range between 4.25 percent and 4.50 percent, holding steady for the fifth straight meeting, generating two Fed dissents for the first time since 1993.

Powell characterized the US economy as solid and said during a news conference that the central bank could afford to monitor economic data in case the tariffs significantly reignite inflation.

US data released Thursday showed the personal consumption expenditures price index climbed 2.6 percent in June from a year ago, an increase from the May report and above the Fed's two percent inflation target.

Trump reiterated his stance in a pair of social media posts early Friday.

"STRONG DISSENTS ON FED BOARD. IT WILL ONLY GET STRONGER 'TOO LATE!'" Trump posted after the dissents were released.

In an earlier post, he blasted "Jerome 'Too Late' Powell," calling the Fed chair, a "stubborn MORON."

Powell "must substantially lower interest rates, NOW. IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!"