Federal Reserve Board Chairman Alan Greenspan warned Wednesday that the central bank may not cut short-term rates the next time stock prices tumble.

"We need to react to changes in financial markets, as we did this fall, but our objective is the maximum sustainable growth of the U.S. economy, not particular levels of asset prices," Mr. Greenspan told the House Ways and Means Committee.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.