Faster Payments Issue Raised During Fed Chair’s Senate Appearance

During testimony before the Senate Banking Committee Thursday, Federal Reserve Chairman Jerome Powell answered questions about the development of a real-time payments system. Powell was delivering the agency's semiannual Monetary Policy Report to Congress. He testified before the House Financial Services Committee Wednesday.

Responding to questions from Sen. Chris Van Hollen (D-MD), Powell indicated that the Fed is currently reviewing comments on its proposal to develop a 24/7/365 real-time gross settlement (RTGS) service.

Committee Chairman Mike Crapo (R-ID) also asked about data collection practices and efforts to ensure consumers have privacy and control over their data. Powell acknowledged the importance of this and said more work needs to be done on the issue. 

In addition, Powell provided economic updates to the committee and shared what trends the Federal Open Market Committee (FOMC) is watching as it sets monetary policy.