The failure in the computer system of the US central bank affected the system of applications on which the work of banks, companies, and federal institutions depend.
The Federal Reserve System (Fed), which acts as the US central bank, announced on Wednesday the resumption of the normal operation of electronic services Fedwire Funds, Fedcash, and bank check clearing services after a three-hour failure of more than a dozen critical payment services that form the basis of the country’s banking system. This is reported by many media outlets, including the Reuters news agency.
The Federal Reserve added that it also restored the operation of electronic applications: the National Settlement Service (NSS) and the securities operations service Fedwire, which provides services for the issuance, settlement, and transfer of treasury and other government securities.
“Our technical team has determined that the cause of the failure was an operational error that occurred at the Federal Reserve,” the Fed said in a statement released on Wednesday. The banks that are part of the federal system have done everything necessary to restore the operation of the Fedwire and NSS applications.
The system outage began around 11:15 am East Coast time, and four hours later, at 2:58 pm, the Federal Reserve’s website still posted an emergency alert for several service areas.
The services affected by the failure facilitate the process of clearing (cashing) checks and allow multibillion-dollar payments to pass through the financial system daily.
Fedwire Funds is “the leading electronic money transfer service that banks, businesses, and government agencies rely on to conduct critical same-day transactions,” the Fed said on its website.
Fedwire Funds in December processed an average of more than 835 thousand transactions per day with an average daily volume of $3.4 trillion.