Federal Reserve Governors Bowman and Waller dissented from this week's decision to hold interest rates steady and explained why they would've cut rates by 25-basis-points.

The core index that omits energy and food costs also rose by 0.3% in June, but the annual rate ticked up to 2.8% from 2.7% and slightly above forecasts. Personal spending rose by 0.3%, below the 0.4% forecast but still suggesting consumers are willing to continue shopping.

Federal Reserve governors Michelle Bowman and Christopher Waller favored an interest-rate cut this week because they have grown more concerned about the labor market, and thought their colleagues were being too cautious about inflation.

Surprisingly weak July hiring data released on Friday highlighted a fractious Federal Reserve debate over whether the central bank should have cut interest rates when it met this week, as it offered some support to those who’d favored an easing in borrowing costs.

But even with the unexpectedly weak employment data for July, other Fed officials took a more cautious view about the labor market, arguing the central bank did the right thing by holding rates steady this week and noting that it will take time to see if job growth is indeed stalling.

The two Federal Reserve governors who favored an interest rate cut at the U.S. central bank's policy meeting this week said on Friday they did so largely due to rising concerns about the job market, amid expectations that any price increases related to trade tariffs will not lead to lasting price pressures.