NEW YORK, USA (CNN) – The Federal Reserve was hit by widespread disruption of multiple payment services on Wednesday, including the system that banks and corporations rely on to transfer trillions of dollars into the financial system every day.
After running into trouble for several hours, the crucial payment system, known as “FedWire,” resumed normal operations before 3 pm ET, according to the Federal Reserve’s website.
In a statement, the Federal Reserve blamed a “operational error” and said it was working to restore services and communicate with clients.
Banks, companies and government agencies rely on FedWire to funnel huge sums of money around the US banking system. And more than $ 3 trillion was transferred daily using FedWire during the fourth quarter of last year.
The problems were widespread, with Fed employees “aware of disruption in all services” beginning at 11:15 am ET, according to a statement on the Fed’s website.
“Our technical teams determined that the cause was an operational error on the part of the Federal Reserve,” the message said.
In an update, the Fed said it had “taken steps to help ensure the flexibility of FedWire” and National Settlement Service applications “including the problem it encountered.”
It is unclear how many banks or companies have been affected by the disruption.
Gemini, a cryptocurrency exchange, said that some of its systems were experiencing interruptions due to the turmoil of the Federal Reserve, adding that “all funds will remain safe while the problem is investigated.”
A person familiar with the matter at a major bank told CNN that FedWire transfers have resumed, adding that there are few concerns that no payments will be executed due to the disruption.
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