Emphasizing the dangers to the economy, the Fed said in its statement that a substantial easing of interest rates in recent months, "combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth."

By a vote of 10 to 1, policy makers declared that inflation remained "of significant concern" - a description that seemed to give less importance to the inflationary risks of keeping rates low than the policy makers had at their meeting on June 25. The lone nay vote came from Richard W. Fisher, president of the Federal Reserve Bank of Dallas, who sought an immediate increase in the federal funds rate, a short-term rate that influences the cost of mortgages, car loans and a host of other consumer credit.

Mr. Fisher has maintained for weeks that the danger of an inflationary spiral warrant a rate increase even at the risk of further slowing a damaged economy.

But in a nod to Mr. Fisher's concerns, the policy makers' statement gave considerable recognition to his point of view that "the upside risks to inflation are also of significant concern."

"Inflation has been high," the statement also said, "spurred by the earlier increases in the prices of energy and some other commodities, and some indicators of inflation expectations have been elevated. The committee expects inflation to moderate later this year and next year, but the inflation outlook remains highly uncertain."