Rev. Jesse Jackson announces in Chicago Wednesday that he will not enter the presidential race. (Reuters)

Jesse L. Jackson said yesterday that "after much reflection and prayer" he had decided not to run a third time for president and instead will focus on waging "the moral fight that lies beyond politics."

Jackson, 57, had hinted in recent months that he was contemplating entering the race. In an interview last month, Jackson said that Vice President Gore should not be allowed to inherit the nomination and that he thought a vigorous primary contest would energize the Democratic Party.

But yesterday at a news conference in Chicago, Jackson said that while he would stay politically active, he would expand his efforts beyond politics and work on stimulating private-sector investment in minority and poor, predominantly white communities, such as Appalachia. Jackson also said he would continue efforts to register minorities, young people and others to vote.

"The kind of front-loaded, fast-tracked $25 million political process takes a lot of time, money and media but doesn't necessarily meet the needs of real people," Jackson said in a telephone interview later. "I'd rather be spending my time elsewhere."

Jackson's decision leaves former senator Bill Bradley (N.J.) as Gore's only major competition for the Democratic nomination. In his news conference, Jackson said it was "premature" to endorse either Gore or Bradley. But he added that both were "men of integrity . . . they have no scars on their reputation. They are very able, qualified men."

Democratic pollster Ron Lester, who has advised Jackson and his son, Rep. Jesse L. Jackson Jr. (D-Ill.), said: "I think it's a major development. With him out of the race, it's a major opportunity for the candidate who can connect with [black] voters."

Jackson's presence in the race could have posed a serious problem for Gore, in particular, since the vice president so far has not matched President Clinton's support among black voters. Lester noted that black voters are concentrated in the big midwestern, northern industrial and southern states with the most electoral votes.

Gore's spokesman, Chris Lehane, said the vice president "welcomed the reverend's announcement," adding, "The Rev. Jackson has always been a powerful and inspirational voice in advocating ways to expand and open up our economic prosperity for all."

Michigan National Democratic Committeeman Joel Ferguson, who ran Jackson's 1988 campaign for president, said Jackson chose not to run largely because he believes Gore and Clinton have been inclusive and have consulted him on important matters. "They respect the role he's playing," Ferguson said. "So he doesn't have the urgency to run."

Jackson said at the news conference that he would continue to play an active role on issues such as education and health care reform. He said he would highlight the "ongoing shame of our nation -- the explosive growth of the prison-industrial complex." And he added that he would expand his Wall Street project, which, among other things, aims to prod wealthy businesses to be more inclusive in investments and hiring.

"We are, I believe, at the leading edge of the next frontier of the civil rights movement: the battle for a broader sharing of economic power and wealth," he said.