It is the first time in 10 months that the central bank has not reduced interest rates at one of its regular meetings.
The Fed vote was 9-1, with the president of the Dallas Fed casting a dissenting vote. He wanted an immediate rate hike.
The next policy meeting is set for early August.
On the Net: Fed statement: http://www.federalreserve.gov/newsevents/press/monetary/20080625a.ht m (Copyright 2008 by The Associated Press. All Rights Reserved.) AP-NY-06-25-08 1453EDT