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. Last Updated: 07/27/2016

Possible Rate Hike

WASHINGTON -- Federal Reserve Chairman Alan Greenspan expressed a new sense of urgency Thursday about the need for vigilance against inflation.

The comments were seen as his strongest warning yet that the central bank stood ready to raise interest rates to launch a preemptive strike against rising prices.

Greenspan's remarks unsettled financial markets. The Dow Jones industrial average, slipping before Greenspan spoke, was down around 50 points by late morning.

The central bank's rate-setting panel, the Federal Open Market Committee, meets Tuesday.

Based on Greenspan's comments Thursday, analysts were looking for a quarter-point increase that would push the federal funds rate from 5.25 percent up to 5.5 percent.