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."
Warned to mind his out-of-court comments, former President Donald Trump returned to his New York civil fraud trial Wednesday as lawyers on both sides closely questioned an accountant who prepared financial statements at the heart of the case.
The third day of former president Donald Trump's civil fraud trial kicked off earlier Wednesday in New York, a day after a judge imposed a limited gag order on Trump.
The National Zoo's three giant pandas — Mei Xiang, Tian Tian and their cub Xiao Qi Ji — are set to return to China in early December with no public signs that the 50-year-old exchange agreement struck by President Richard Nixon will continue.
Speaker Kevin McCarthy plans to force a vote Tuesday on the far-right effort to oust him from his leadership position and insists he will not cut a deal with Democrats to remain in power, setting the stage for an extraordinary and unpredictable showdown on the House floor.
Hunter Biden pleaded not guilty on Tuesday to three federal firearms charges filed after a plea deal imploded, putting the case on track toward a possible trial as the 2024 election looms.
