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."
Democratic Sen. Joe Manchin of West Virginia announced Thursday that he won’t seek reelection in 2024, giving Republicans a prime opportunity to pick up a seat in the heavily GOP state.
Authorities on Thursday were trying to determine who sent letters filled with fentanyl or other substances to local election offices, an attack that appears to have targeted multiple states in the latest instance of threats faced by election workers around the country.
The White House said Israel has agreed to put in place four-hour daily humanitarian pauses in its assault on Hamas in northern Gaza starting on Thursday, as the Biden administration said it has secured a second pathway for civilians to flee fighting.
Columnist and political analyst Jonathan Harris joined Cheddar News to break down what stood out from Wednesday's third Republican presidential primary debate.
Mississippi's largest county ran out of ballots during Wednesday's governor's election as some voters say they had to wait for up to an hour for new ballots to be printed before they could cast their votes.
Republican presidential candidates used the third debate of the GOP primary campaign to show their support for Israel and display at least some willingness to criticize Donald Trump.
