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UPDATE 1-Top officials at New York Fed stepping down

Trevor Hunnicutt and Richard Leong

(Adds economist quote, background on Fed's operations)

NEW YORK, May 28 (Reuters) - The Federal Reserve Bank of New York said two top executives would step down on June 1, leaving an interim figure in charge of the U.S. central bank's market operations.

Simon Potter, who as head of the Markets Group runs the broader Federal Reserve system's market operations and asset holdings, is stepping down, as is Richard Dzina, head of the Financial Services Group, the New York Fed said in a statement.

New York Fed President John Williams named Ray Testa, chief operating officer of the Markets Group, as its interim head and also named an interim chief from within the regional bank to run the Financial Services Group.

The Markets Group is charged with trading to implement the Fed's interest rate policy and also manages relationships between the central bank and Wall Street.

A spokeswoman, Suzanne Elio, declined to comment beyond the statement.

Potter, an economist, is a veteran of more than two decades at the New York Fed and has run the Markets Group since June 2012.

The group has had an enlarged role in markets because of the Fed's massive asset purchases to support the U.S. economy in the aftermath of the 2008 global financial crisis. The central bank currently holds nearly $4 trillion in assets.

"I'm not sure if there is ever a good time for someone like Simon to leave," said Michael Gapen, chief U.S. economist at Barclays in New York. "He's been there for a long time and has a difficult job. He has helped lay out the framework on how to manage the Fed's balance sheet and the plumbing of money markets." (Reporting by Trevor Hunnicutt and Richard Leong; Editing by Dan Grebler)