Fed may still need to hike rates twice this year: Rosengren

File Photo: The Federal Reserve Bank of Boston's President and CEO Eric S. Rosengren speaks in New York, April 17, 2013. REUTERS/Keith Bedford

WASHINGTON (Reuters) - A top Federal Reserve official said on Wednesday the U.S. central bank may still need to raise interest rates a couple times this year, although he said he could not rule out the possibility that the Fed might actually have to ease policy.

“The financial markets are worried about a much worse outcome; the forecasters are expecting a much better outcome,” Boston Federal Reserve Bank President Eric Rosengren told Bloomberg Television.

“So, I do think we have a situation where if we get a much better outcome, the two increases that were occurring at the December (Fed) meeting are probably right, and if the markets are right, then it is possible that we would need to ease, although that’s not my view,” he added, referring to two rate hikes forecast by Fed policymakers at their last meeting.

Reporting by Tim Ahmann