The Federal Reserve’s system that allows financial institutions to send money back and forth electronically went down on Wednesday morning.
The ‘operating error’, as the Fed describes it, affects several services, including the important automated cleaning system, which connects the deposit and related institutions, sending electronic credit and debt transfers.
There were no initial indications that disorder was suspected.
Along with the Fed ACH service, other systems affected included Check 21, FedCash, Fedwire, and the national settlement service.
According to a statement from the central bank, he became aware of a problem around 11:15 ET.
“Our technical teams have determined that the cause is an operational error by the Federal Reserve. We will provide updates via service status as more information becomes available,” the Fed said.
The statement further noted that the error affected the payment limits and said that the Fed would “communicate remedial efforts to our customers if available.”
No further information was available.
The list of services affected: Account Services, Central Bank, Check 21, Check Adjustments, FedACH, FedCash, FedLine Advantage, FedLine Command, FedLine Direct, FedLine Web, Fedwire Funds, Fedwire Securities, National Settlement.
Interruptions, especially with the ACH system, can have a major impact. The system handles direct payments of payroll, social security and income tax refunds, as well as automatic payments for mortgages and utility bills.
FedCash distributes currency and coins, which have been in high demand since the Covid-19 pandemic. FedWire is a settlement service, while FedLine provides alternative services to the ACH system.