The outage has impacted many financial services, including Check 21, FedCash, Fedwire and the national settlement service. According to an official statement, the interruption was caused by “a Federal Reserve operational error”.
On Wednesday afternoon at 12:43 PM ET (17:43 GMT), the Federal Reserve System network that allows electronic money transactions between financial institutions went down.
“The Federal Reserve Bank staff is currently investigating a disruption to multiple services. We will continue to provide updates as soon as they are available,” the Fed said in a statement.
Among the impacted services are Account Services, Check 21, Check Adjustments, FedACH, FedCash, FedLine Advantage, FedLine Command, FedLine Direct, FedLine Web, Fedwire Funds, Fedwire Securities, and National Settlement.
Issues with the Central Bank, according to the Fed, have been resolved, and “users may resume normal access”, while other services remain shut down. At 2:30 PM ET (19:30 GMT), the Fed said that access to FedCash Services via the FedLine Web solution had also been restored.
Shortly after, it was announced that access to several other services had been resumed.
“The Fedwire Funds Service, Fedwire Securities Service, and National Settlement Service have resumed processing and are operating normally. The Federal Reserve Banks have taken steps to help ensure the resilience of the Fedwire and NSS applications, including recovery to the point of failure”, the Fed said.
According to the statement, the reason behind the outage was “a Federal Reserve operational error”.
“We acknowledge that payment deadlines are impacted and will communicate remediation efforts to our customers when available. Thank you for your patience while we work to resolve the issue”, the Fed said.
Digital cryptocurrency exchange platform OKCoin announced that due to Federal Reserve service outages its customers may experience “delays for USD deposits and withdrawals into and out” on the platform until issues are resolved.
The Federal Reserve system handles essential financial transactions such as direct payroll deposits, Social Security, income tax refunds, auto payments for mortages, utility bills and other operations.
According to reports, disruptions in the federal transaction system have not happened for “decades.”