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Saturday, April 17, 2021

U.S. Federal Reserve Suffers Disruption of ‘Fedwire’ Payment System

The United States Federal Reserve systems suffered a widespread disruption to multiple services for several hours on Feb. 24 due to an “operational error.”

According to a message on the website of the Federal Reserve, its staff “became aware of a disruption for all services” at around 11:15 a.m. Eastern Time (ET) and identified the cause as an “operational error” by 2:14 p.m. ET.

Among the services affected by the disruption include the Fedwire Services, FedCash, National Settlement Service (NSS), Central Bank, and Check 21.

The affected services gradually resumed normal operations throughout the day as the issue was being resolved.

Fedwire, which is a payment system crucial for banks, government agencies, and businesses to transfer large amount of money, resumed processing and normal operations at 2:46 p.m. ET.

The message also said that Fed has “taken steps to help ensure the resilience of the Fedwire and NSS applications, including recovery to the point of failure.”

It is not clear how many banks and businesses were affected by the disruption.

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