‘Operational error’ causes Fed payment system to crash

‘Operational error’ causes Fed payment system to crash
This May 22, 2020, file photo shows the Federal Reserve building in Washington. A Federal Reserve survey of U.S. business conditions has found modest economic gains at the start of the year, although some parts of the country saw slowdowns stemming from a renewed surge of COVID-19 cases. The Fed report released Wednesday, Jan. 13, 2021 said that the bulk of the Fed's 12 regions reported modest gains in economic activity in recent weeks. But two districts saw declines in activity, and another two reported little or no change. (Source: AP Photo/Patrick Semansky, File)

CHARLOTTE, N.C. (AP) — The Federal Reserve’s back-end payment system that banks, government entities and investors rely on to transfer cash temporarily went dark.

The Fed blamed an “operational error” for FedWire’s collapse, and was able to restore services after being down for 2 1/2 hours on Wednesday.

FedWire is the Federal Reserve’s real-time wire transfer service that is used to send large sums of cash between banks, federal and state governments as well as banks that need to clear funds.

Trillions of dollars move through the FedWire infrastructure on a daily basis.

Copyright 2021 The Associated Press. All rights reserved.