Payments services disrupted at world’s largest central bank

The U.S. Federal Reserve has been hit by a widespread disruption in several payment services, including the system that banks and businesses rely on to transfer billions of dollars every day.

After experiencing problems for several hours, the critical payment system, known as “Fedwire,” resumed normal operations before 3 p.m. EST, according to the Federal Reserve’s website.

In a statement, the Federal Reserve blamed an “operational error” and said it was working to restore services and communicate with customers.

Banks, businesses, and government agencies depend on FedWire to transfer huge sums of money into the US banking system. Over $ 3 trillion was transferred daily through FedWire in the fourth quarter of last year.

The problems were widespread, with Fed employees “aware of an interruption in all services” from 11:15 am ET, according to a statement posted on the Fed’s website.

In an update, the Fed said it had “taken steps to help ensure the resilience of FedWire” and National Settlement Service applications “including the problem encountered.”

A person familiar with the case at a major bank told CNN that Fedwire transfers have resumed, indicating there was little concern that no payments will be made due to the disruption.

Source: CNN

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