WASHINGTON, DC - MARCH 13: The seal of the Federal Reserve Board is seen outside its William McChesney Martin Building as they joined other government financial institutions to bail out Silicon Valley Bank's account holders after it collapsed on March 13, 2023 in Washington, DC. U.S. President Joe Biden tried to assure the public that the U.S. banking industry was safe following SVB's collapse and after New York regulators' forced closure of Signature Bank. (Photo by Alex Wong/Getty Images)
The Federal Reserve on Wednesday evening said its long-awaited digital payment system, the FedNow Service, will start operating in July. The service is designed to provide a national platform for financial institutions to settle payments in real-time and at lower cost. That could include large banks, payment processors, and the U.S. Treasury.
The central bank plans to begin the certification process in April and start testing the service with customers in June. In the meantime, the Fed is advising banks to get ready for the roll-out.
"With the launch drawing near, we urge financial institutions and their industry partners to move full steam ahead with preparations to join the FedNow Service," said Ken Montgomery, first vice president of the Federal Reserve Bank of Boston and FedNow program executive.
While a number of financial institutions have already agreed to sign on, Montgomery stressed that getting more of the economy on board will be key to its success.
"With the FedNow Service, the Federal Reserve is creating a leading-edge payments system that is resilient, adaptive, and accessible," said Tom Barkin, president of the Federal Reserve Bank of Richmond and FedNow Program executive sponsor. "The launch reflects an important milestone in the journey to help financial institutions serve customer needs for instant payments to better support nearly every aspect of our economy."
Republican presidential candidate Tim Scott says he is ending his 2024 bid for president in a move that surprised his donors and stunned his campaign staff.
House Speaker Mike Johnson unveiled his proposal on Saturday to avoid a partial government shutdown by extending government funding for some agencies and programs until Jan. 19 and continuing funding for others until Feb. 2.
Activists protesting corporate profits, environmental abuses, poor working conditions and the Israel-Hamas war marched in downtown San Francisco on Sunday, united in their opposition to a global trade summit that will draw President Joe Biden and leaders from nearly two dozen countries.
U.S. officials say that five U.S. servicepeople were killed when a military helicopter crashed over the eastern Mediterranean Sea during a training mission.
FBI agents seized phones and an iPad from New York City Mayor Eric Adams this week as part of an investigation into his campaign fundraising, his attorney confirmed Friday.
A man was arrested early Friday in the alleged assault of former U.S. Sen. Martha McSally, who says she was molested as she jogged along the Missouri River in Council Bluffs, Iowa.
President Joe Biden and Chinese President Xi Jinping will meet Wednesday in California for talks on trade, Taiwan and managing fraught U.S.-Chinese relations in the first engagement between the leaders of the world's two biggest economies in a year.
a phrase about the space in between, “from the river to the sea,” has become a battle cry with new power to roil Jews and pro-Palestinian activists in the aftermath of Hamas' deadly rampage across southern Israel Oct. 7 and Israel's bombardment of the Gaza Strip.
