Central Banking

Late-afternoon Fedwire surge explained

The New York Fed finds three reasons for why an increasing number of payments are processed through the Fedwire funds transfer system in late afternoon.

The Fedwire funds service, the biggest large-value payments system in the United States, has traditionally been busiest in the late afternoon, but the concentration of activity at this time has rise between 1998 and 2006. The Fed's research suggests that this is because of a rise in value of transactions, settlement patterns and an increase in

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