To Support Interbank Settlement of Faster Payments

To Support Interbank Settlement of Faster Payments

Officers Hon. Ce ric Richmon Chair Hon. An re Carson First Vice Chair Hon. Karen Bass Secon Vice Chair Hon. Bren a Lawrence Secretary Hon. Gwen Moore October 29, 2018 Whip Hon. Anthony Brown Parliamentarian The Jero e H. Powell Chair Hon. Yvette D. Clarke Board of Governors of the Federal Reserve Syste Member-At-Large 20th Street and Constitution Avenue NW Members Washington, DC 20551 Hon. John ewis, GA - '87 Hon. Eleanor Holmes Norton, DC - '91 Hon. Maxine Waters, CA - '91 VIA ELEC RONIC SUBMISSION: regs.co [email protected] Hon. Sanford D. Bishop, Jr., GA - '93 Hon. James E. Clyburn, SC - '93 Hon. Alcee . Hastings, F - '93 Re: Potential Federal Reserve Actions to Support Interbank Settlement of Hon. Eddie Bernice Johnson, TX - '93 Faster Payments; Docket No. OP - 1625 Hon. Bobby . Rush, I - '93 Hon. Robert C. "Bobby" Scott, VA - '93 Hon. Bennie G. Thompson, MS - '93 Dear Chair Powell: Hon. Sheila Jackson ee, TX - '95 Hon. Elijah Cummings, MD - '96 Hon. Danny K. Davis, I - ‘97 We are writing to urge the Federal Reserve to use its existing authority under the Hon. Gregory W. Meeks, NY - ‘98 Hon. Barbara ee, CA - '98 Expedited Funds Availability Act to andate real ti e pay ents. Additionally, Hon. William acy Clay, Jr., MO - '01 we urge the Fed to odernize its own infrastructure to be able to acco plish this Hon. David Scott, GA - '03 Hon. G.K. Butterfield, NC - '04 goal with the Auto ated Clearing House syste . Delay is costing A ericans Hon. Emanuel Cleaver II, MO - '05 billions of dollars they do not have and contributing to the growing inco e Hon. A1 Green, TX - '05 Hon. Gwen Moore, WI - '05 inequality that the Fed rightfully agrees is har ing our nation. Hon. Yvette D. Clarke, NY - '07 Hon. Keith Ellison, MN - '07 We appreciate the Fed’s request for co ents on i proving its settle ents Hon. Hank Johnson, GA - '07 Hon. Andre Carson, IN - '08 infrastructure to support faster pay ents because of this initiative’s i pact on Hon. Marcia . Fudge, OH - '08 low and oderate inco e (“LMI”) co unities, especially those individuals Hon. Karen Bass, CA - '11 Hon. Cedric Richmond, A - '11 that ay live paycheck to paycheck. Of particular interest is Question 7 of the Hon. Terri Sewell, A - '11 request for co ents where the Board inquires whether updating its settle ents Hon. Frederica Wilson, F - '11 Hon. Donald M. Payne, Jr., NJ - '12 infrastructure would help achieve ubiquitous, nationwide access to safe and Hon. Joyce Beatty, OH - '13 efficient faster pay ents in the long run. The Board raises this question after Hon. Hakeem Jeffries, NY - '13 Hon. Marc Veasey, TX - ‘13 noting that “the net effect on the efficiency of [a] faster pay ent environ ent Hon. Robin Kelly, I - '13 would depend on the extent to which it generates societal benefits by Hon. Cory Booker, NJ - '13 Hon. Alma Adams, NC - ‘14 i proving... public access to safe and secure faster pay ent services.” Hon. Brenda awrence, MI - '15 Hon. Mia ove, UT - '15 Hon. Stacey Plaskett, VI - ‘15 The i petus behind the Fed posing this question suggests the net benefit of a Hon. Bonnie Watson Coleman, NJ - '15 faster pay ents syste is unclear. However, we believe a preponderance of Hon. Dwight Evans, PA - '16 evidence already exists that highlights the overwhel ing public benefit of a Hon. Kamala D. Harris, CA - ‘17 Hon. isa Blunt Rochester, DE - '17 faster pay ents syste . Specifically, research conducted by the Brookings Hon. Anthony Brown, MD - '17 Institution, Pew Charitable Trust, Center for Financial Services Innovation and Hon. Val Demings, F - '17 Hon. A1 awson, F - '17 others has illustrated the prohibitively high costs of our nation’s slow pay ent Hon. A. Donald McEachin, VA - ‘17 syste and the sizable benefits for co unities of color that would begin to 420 Cannon House Office Building • Washington, DC 20515 CBC.HOUSE.GOV accrue savings fro adoption of real ti e pay ents. The increased prevalence of overdraft fees, high cost s all dollar credit, and check cashing has cost our constituencies tens of billions of dollars that a real ti e pay ents syste would help a eliorate. With the public benefits so clear and the costs of delay so dire, we reiterate our strong desire for the Board to ove expeditiously toward i ple enting a faster pay ents syste . Not only should the Fed’s ulti ate decision reflect the circu stances endured by our co unities, it should also reflect the forward-thinking evolution of pay ent syste s de onstrated abroad. Sincerely, Cedric Rich ond Gregory W. Meeks Chair, Congressional Black Caucus Co-Chair, CBC Econo ic Develop ent and Wealth Creation Task Force Joyce Beatty i/ Dwight Evans Co-Chair, CBC Econo ic Develop ent and Co-Chair, CBC Econo ic Develop ent and Wealth Creation Task Force Wealth Creation Task Force Page 2 of 2.

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