Washington, D.C. – Today, U.S. Senator John Fetterman (D-PA) issued an oversight letter to Federal Reserve Vice Chair for Supervision Michael Barr, pressing the Federal Reserve for greater transparency and detailed responses regarding the performance of FedNow, the central bank’s new instant payment platform, and the fees consumers have to pay for sending payments over FedNow.
The letter follows the Federal Reserve’s reluctance to provide complete and detailed answers to Senator Fetterman’s Questions for the Record (QFRs) submitted following a Senate Banking Committee hearing earlier this year.
The letter reads in part: “The Federal Reserve has done an extraordinary job navigating the American economy and financial system through a variety of difficult circumstances in recent years. The Fed and its actions are critical to ensuring a sound financial system that works for every family and every business. Affordable, safe instant payments are an important part of that critical work.”
In the letter, Senator Fetterman emphasized the need for more information and greater clarity around FedNow, which has been operational for over a year. He expressed concerns about the Federal Reserve’s lack of transparency in providing key data, including the number of financial institutions using FedNow, transaction volumes, and whether the Fed is tracking how much banks are charging consumers to use the service.
The full letter to the Federal Reserve can be found here.
