To achieve these goals, Congress cast the Federal Reserve in the often difficult position of providing payment services, thereby competing with some of the institutions it regulates, and regulating the payments system in which it is an active participant. We are very mindful of these sometimes conflicting responsibilities and take great pains to ensure that each responsibility is addressed fairly and equitably.
As service providers, the Federal Reserve Banks strive to operate in an efficient and cost-effective way. The Reserve Banks continually upgrade their computer and telecommunications systems so that increasing proportions of funds, book-entry, and ACH transactions can be processed without human intervention and, therefore, more accurately, rapidly, and cost effectively.