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By Andrew Stanton
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The Federal Reserve was hit with transaction issues on Tuesday, but the problems were resolved by the afternoon.
Newsweek reached out to the Federal Reserve for comment via email.
Federal Reserve Experiencing Issues: What We Know
Federal Reserve Financial Services confirmed the transaction issues had been resolved in an update at 1:41 p.m. ET.
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"Customers can now return to normal processing of FedACH Services. We value your business and apologize for any inconvenience caused by this operational issue," the update reads.
The issue appeared to be with the FedACH (Automated Clearing House) Services suite, which “provides financial institutions with efficient, low-cost batched payment services that enable an electronic exchange of debit and credit transactions through the ACH network,” according to the Federal Reserve Financial Services.
In a noon update, Federal Reserve Financial Services wrote that ACH Services "is experiencing delays associated with internal systems processing.
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"The FedACH Services application is currently offline while we work towards resolution," the update reads. "File distribution and settlement for the first same-day ACH window will be delayed. File distribution for the first ACH window for future dated items will also be delayed. Users of the FedLine Advantage® solution may experience an error when attempting to utilize the FedACH application."
Users of FedLine Direct and FedLine Command "may continue to send files but will not receive an acknowledgement until service has been restored," the update reads.
"Customers are advised to not resend their FedACH origination files if they are still pending receipt of an acknowledgement. Delivery of reports for the FedPayments® Reporter Service for FedACH® Services will also be delayed," the update continues.
Alerts about delays began later Monday evening.
ACH is commonly used by financial institutions for direct deposits of payroll and Social Security benefits, according to the Federal Reserve.
"While the ACH network was originally used to process mostly recurring payments, the network is today being used extensively to process one-time debit transfers, such as converted check payments and payments made over the telephone and Internet," the Fed's website reads.
It was unclear what caused the issues or when services would be restored to normal.
Which Banks Are Affected by the Outage?
No official statement has been released confirming which banks are affected.
Social media reports show that individuals banking with CapitalOne received a message stating that the “Federal Reserve is experiencing issues with certain transactions” and that the institution is “closely monitoring the situation.” Reports of the issues have been posted in the CapitalOne subreddit on Tuesday.
It was unclear whether other banks were experiencing the same situation.
Who Operates the Federal Reserve?
The Federal Reserve is led by a board of governors in Washington, D.C. It is an independent agency of the federal government. It was created in 1913 by the Federal Reserve Act and serves as the nation's central bank.
Governors are appointed by the president and confirmed by the Senate. Currently, Jerome Powell serves as the chair of the Federal Reserve, but his term ends this year. President Donald Trump has appointed Kevin Warsh, a former member of the board, as its new chair. If confirmed by the Senate, he could take over after Powell steps down as the chair at the end of his term in May.
Update 3/3/26, 1:02 p.m. ET: This article was updated with additional information.
Update 3/3/26, 2:40 p.m. ET: This article was updated with additional information.
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