Fed ready to guard price stability says Greenspan

The Federal Reserve will do "what is required" to keep inflation under control if it transpires the forecast behind its view that interest rates can rise gradually is wrong, Fed Chairman Alan Greenspan said Tuesday.

Click here to read Greenspan's remarks to the Central Bank panel discussion: economic developments on the Federal Reserve's web site

"The (Fed policy-making) committee is of the view ... that monetary policy accommodation can be removed at a pace that is likely to be measured,"

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