The Federal Reserve Board on Tuesday released the minutes from its recent meetings to review and determine the discount rates provided to depository institutions through the discount window. The minutes, issued in a press release dated August 25, 2026 and cleared for release at 2:00 p.m. EDT, cover the Board meetings that occurred on July 20 and July 29, 2026. The full document is available as a PDF attachment. The Board customarily publishes these minutes on the same afternoon as the corresponding FOMC minutes, roughly three weeks after the meetings they cover, a cadence consistent with the August 25 release for the late-July gatherings.

The discount rate is the interest rate the Federal Reserve charges on loans it extends to eligible depository institutions through the discount window, the central bank's lending facility that provides collateralized liquidity to banks. The window operates through three programs, each with its own rate: primary credit for institutions in generally sound financial condition, secondary credit for institutions that do not qualify for primary credit, and seasonal credit for smaller institutions with recurring seasonal funding needs, with the primary credit rate being the one commonly cited as 'the discount rate.' Under the Federal Reserve System's framework, the rate is set through an administrative process: the boards of directors of the twelve regional Federal Reserve Banks periodically submit proposed changes, which are then reviewed and determined by the Board of Governors in Washington, D.C. The published minutes typically record, district by district, what rate changes the Reserve Bank boards requested and how the Board acted on them.

The Board's announcement noted that its process for setting the discount rate is distinct from the process the Federal Open Market Committee (FOMC) follows in setting the target range for the federal funds rate, the overnight rate at which banks lend reserve balances to one another. The FOMC establishes a target range for that market rate at its scheduled policy meetings, whereas the discount rate is an administered rate determined directly by the Board. The two have nonetheless moved together in practice: under the primary credit framework in place since January 2003, the Fed has generally kept the primary credit rate at a spread above the top of the federal funds target range, set at 50 basis points for many years and narrowed to 25 basis points in March 2020, a margin intended to keep the window a backup source of liquidity rather than a routine one. Historically, the Board has voted matching discount rate changes on the same days the FOMC moved its target range, so these minutes can be read alongside the FOMC's actions for the corresponding period.

For media inquiries, the Board directed contacts by email or by telephone at 202-452-2955.