Economic Buzz: Fed Focused On Fostering Safe, Efficient And Widely Accessible Payments Infrastructure

30 Aug 2022 , 12:42 PM

The US Fed Vice Chair Lael Brainard stated in a latest update fostering a safe, efficient, and widely accessible payments infrastructure has been a central part of the Feds mission since the very beginning. The Federal Reserve Banks all around the country have provided payment and settlement services alongside the private sector for more than 100 years. Over that period, Fed have repeatedly innovated and invested in collaboration with the private sector to transform the payment system, using the latest technology to better meet the needs of businesses and households. Now, after extensive industry engagement and planning, the Federal Reserve is on track to deliver the FedNow Service by May to July of 2023. The FedNow Service will transform the way everyday payments are made throughout the economy, bringing substantial gains to households and businesses through the ability to send instant payments at any time on any day, and the funds being immediately available to recipients to make other payments or manage cash flow efficiently. Immediate availability of funds could be especially important for households managing their finances paycheck to paycheck or small businesses with cash flow constraints. Having the capacity to manage money in real time could help households avoid costly late payment fees or free up working capital for small businesses to finance growth.Powered by Commodity Insights