JPMorgan may need to revise timeline for settlement business exit: Fed's Powell

Powell said JPMorgan had publicly recognized the importance of not disrupting financial markets when it leaves the business.

"The timeline set for a gradual transition over the next two years should be sufficient to avoid significant dislocations," Powell said in prepared remarks for a conference in New York on the structure of the U.S. Treasury market.

"However, if unexpected complications arise, that timeline may need to be adjusted," Powell said.

Currently, JPMorgan and Bank of New York Mellon Corp are the only two companies that provide settlement services for U.S. government securities.

"Any disruptions to these critical market services could have serious consequences for financial stability," Powell said, adding that the Bank of New York Mellon will continue to be held to higher standards of resilience given its systemic importance.

(Reporting by Jason Lange in Washington; editing by Diane Craft)