At one point on Thursday, Feb. 24, the Federal Reserve Bank’s (FED) wire transfer system was completely down and the system was down for several hours, preventing major banks and other financial institutions from transferring funds.
The central bank said in a statement that it became aware of the problem at about 11:15 a.m. ET. A person who works at a Wall Street bank said the Fedwire and ACH systems appear to have come back online around 2:45 p.m. ET, with several hours of downtime in between.
The outage could have widespread effects, CNBC reported. The system also handles direct deposits for payroll, Social Security payments, income tax refunds and automatic payments for mortgages and utilities.
In a brief statement, the Federal Reserve said.
“Our technical team has determined that the cause was an operational error on the part of the Federal Reserve. As more information becomes available, we will provide updates through Service Status.”
The authorities later released another statement saying, “The issue affecting the Central Bank application has been resolved and users can resume normal access. We acknowledge that payment deadlines will be impacted and will communicate remedies to our customers as they become available.”
Some of the services affected for the first Time include Check21, FedCash, Fedwire and the National Clearing Service, in addition to the FedACH service.
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