Federal Reserve Board Chairman Alan Greenspan said Tuesday that the central bank would raise interest rates if the economy does not slow down in the second half of the year.

"I am confident that the Federal Open Market Committee would move to tighten reserve market conditions, should the weight of incoming evidence persuasively suggest an oncoming intensification of inflation pressure that would jeopardize the durability of the economic expansion," Mr. Greenspan told a House banking subcommittee.

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