Crypto Brief - Lowenstein Crypto Newsletter - August 20, 2026 - JD Supra

The Federal Reserve Board on Tuesday released minutes from its meetings to review and determine the discount rates provided to depository institutions through the discount window, covering meetings held on August 17, September 9, and September 16, 2026, according to the Federal Reserve's release. The Board noted that its process for setting the discount rate is distinct from the process the Federal Open Market Committee follows in setting the target range for the federal funds rate. Separately, the Bank of England stated that its November 2026 RTGS standards release, including messaging standards for CHAPS payments, will be deferred in its entirety after Swift announced on 27 August 2026 its decision to delay the November 2026 Swift Standards Release. The ECB also published its Consumer Expectations Survey results for September 2026, showing median perceived inflation over the previous 12 months increased to 3.6% from 3.5% in August.

Background

The sources describe several institutional updates. The Federal Reserve's release explains that the discount rate is set through a process distinct from the FOMC's target range for the federal funds rate, and that the minutes cover Board meetings on August 17, September 9, and September 16, 2026. The Bank of England's statement provides background on Swift's 27 August 2026 announcement to delay the November 2026 Swift Standards Release, citing industry's request for additional time to prepare for the removal of the unstructured postal address format following concerns about global readiness. The Bank of England said it worked closely with Swift and other major market infrastructures to support a co-ordinated approach, and that maintaining global alignment is important to preserving interoperability and to avoid the introduction of new implementation risks. The ECB's Consumer Expectations Survey results for September 2026 show median consumer perceptions of inflation over the past 12 months and expectations for inflation over the next 12 months increased slightly, while median expectations for inflation three years and five years ahead were unchanged. The survey also reported changes in expectations for nominal income growth, spending growth, economic growth, unemployment, home prices, and mortgage interest rates.

What happened

According to the Federal Reserve's release, the Board on Tuesday released minutes from its meetings to review and determine the discount rates provided to depository institutions through the discount window. The minutes cover Board meetings that occurred on August 17, September 9, and September 16, 2026. The release states that the Board's process for setting the discount rate is distinct from the process the Federal Open Market Committee follows in setting the target range for the federal funds rate. In a separate official statement, the Bank of England said that on 27 August 2026, Swift announced its decision to delay the November 2026 Swift Standards Release based on industry's request for additional time to prepare for the removal of the unstructured postal address format following concerns about global readiness. The Bank of England stated that after careful consideration it is also delaying what would have been the November 2026 RTGS standards release, including the messaging standards for CHAPS payments. The Bank said its November 2026 RTGS standards release will therefore be deferred in its entirety, consistent with Swift delaying the entire CBPR+ standards release. The ECB's press release on its Consumer Expectations Survey results for September 2026 reported that median perceived inflation over the previous 12 months increased to 3.6% from 3.5% in August, and median expectations for inflation over the next 12 months increased to 3.1% from 3.0%. Median expectations for inflation three years ahead and five years ahead were unchanged at 2.9% and 2.5% respectively. Expectations for nominal income growth over the next 12 months increased to 1.1% from 1.0%, and expected nominal spending growth over the next 12 months increased to 3.7% from 3.6%. Expectations for economic growth over the next 12 months decreased to -1.5% from -1.2%, and expectations for the unemployment rate 12 months ahead increased to 11.3% from 11.0%. Expectations for home price growth over the next 12 months increased to 3.5% from 3.4%, while expectations for mortgage interest rates in 12 months' time remained unchanged at 4.9%.

Market impact

The sources provide limited market pricing data. The ECB Consumer Expectations Survey reports median expectations for mortgage interest rates in 12 months' time remained unchanged from July at 4.9%, with households in the top income quintile expecting the lowest mortgage interest rates 12 months ahead at 4.4% and those in the bottom quintile expecting the highest rates at 5.7%. The survey also shows expectations for home price growth over the next 12 months increased to 3.5% from 3.4%, with the lowest income quintile expecting 4.0% and the highest quintile expecting 3.2%. The net percentage of households reporting a tightening of access to credit over the previous 12 months increased compared with August, as did the net percentage of households expecting tighter credit conditions over the next 12 months relative to those expecting an easing. The Bank of England statement does not include market prices but notes that maintaining global alignment is important to preserving interoperability and to avoid the introduction of new implementation risks. The Federal Reserve release does not include discount rate levels or market prices. A separate news report on prediction markets, not an official source, stated that the 'Will the Student List win 50% or more of the vote in the 2026 Serbian parliamentary election?' market was priced at 13.9% YES, a slight decrease from previous days.

Why it matters

The Federal Reserve's release indicates that the discount rate setting process is distinct from the FOMC's process for the federal funds rate target range, which matters for understanding how depository institutions' borrowing costs are determined. The Bank of England's statement explains that delaying the November 2026 RTGS standards release, including CHAPS messaging standards, is intended to maintain global alignment with Swift's delay of the November 2026 Swift Standards Release, preserving interoperability and avoiding new implementation risks. The Bank said it will continue to engage with Swift, other market infrastructures, and RTGS participants directly on next steps while providing broader updates at ISO 20022: Implementing the global payments messaging standard within CHAPS and RTGS to support organisations in amending their own planning as further detail on revised timelines becomes available. The ECB survey results show that consumers' median inflation perceptions and near-term expectations increased slightly while longer-term expectations were unchanged, and that expectations for economic growth decreased while expected unemployment increased. These survey results provide information on consumer expectations that may inform assessments of economic conditions.