The Federal Reserve system that allows financial institutions to send money electronically back and forth fell on Wednesday morning.
The “operating error,” as described by the Fed, affected several services, including its centralized automated clearing system, which connects depository and related institutions with electronic credit remittance and debt transfers.
There were no initial indications that foul play was suspected.
Along with the Fed ACH service, other affected systems included Check 21, FedCash, Fedwire, and the national settlement service.
A statement from the central bank said it learned of a problem around 11.15am ET.
“Our technical teams have determined that the cause is a Federal Reserve operational error. We will provide updates through service status as more information becomes available,” the Fed said.
The statement also noted that the error affected payment terms and said the Fed “will communicate remediation efforts to our customers when they are available.”
No further information was available.
The list of services affected: account services, central bank, check 21, check settings, FedACH, FedCash, FedLine Advantage, FedLine Command, FedLine Direct, FedLine Web, Fedwire Funds, Fedwire Securities, National Settlement.
Interruptions, especially with the ACH system, can have far-reaching impacts. The system manages direct payroll deposits, Social Security and income tax refunds, as well as automatic mortgage payments and utility bills.
FedCash distributes coins and coins, which have been tightly supplied since the Covid-19 pandemic was imposed. FedWire is a settlement service while FedLine provides alternative services to the ACH system.