Fed cuts interest rate by 0.25%, signals two more reductions this year
On September 17, 2025, the U.S. Federal Reserve reduced its benchmark interest rate by 25 basis points, bringing the federal funds rate to 4.00%–4.25%. This marks the fourth rate cut since September 2024.
Why the cut matters
- With rates falling, fixed-income investments (like Treasury bonds, savings accounts) become less attractive. Investors tend to seek higher returns, which often leads them to riskier assets — such as stocks or cryptocurrencies.
- The Fed’s decision was nearly unanimous, with the voting members of the Federal Open Market Committee (FOMC) supporting the move 11‑1.
Expected further cuts
- The Fed signaled that this cut might not be the last. Two more rate decreases are anticipated before the end of the year.
- These anticipated cuts are part of broader expectations in markets that monetary policy will continue easing.
Political pressure adds context
- President Donald Trump has publicly pushed the Fed toward steeper rate reductions. Since returning to office, he has advocated for more aggressive cuts than what the Fed may have planned.
- Trump even suggested possible removal of Fed Chair Jerome Powell if rate cuts don’t meet his expectations.
Crypto markets’ reaction
- The move has mixed implications for the crypto sector. Lower interest rates reduce yields on traditional savings/interest-bearing assets, potentially making crypto more appealing.
- After the announcement, Bitcoin traded around $116,000, slipping ~0.7% on the day, while Ethereum saw a modest rise to roughly $4,483.
Implications & outlook
The rate cut and the expectation of additional cuts suggest a shift toward greater monetary ease in the U.S. This can serve as a tailwind for risk assets, including the cryptocurrency markets, since cheaper borrowing and lower yields on safer assets tend to encourage investment in alternatives.
However, the final impact depends on how financial markets, regulators, and investors respond — especially given the political pressures and the Fed’s cautious pace. If further cuts do materialize, crypto could see an influx as investors chase yield and growth outside traditional finance.
Source: Bankless
Swiss banks pioneer legally binding interbank payments via public blockchain
Switzerland’s major financial institutions have taken a significant step toward integrating blockchain into everyday banking. UBS, Sygnum Bank, and PostFinance, under the Swiss Bankers Association (SBA), have successfully completed a proof‑of‑concept (PoC) that demonstrates blockchain’s viability for bank deposits and interbank payments.
The study explored two use cases. In the first, traditional fiat transfers (off‑chain) were triggered by payment instructions represented as “deposit tokens” on a public blockchain. These tokens allowed for payments between customers of the participating banks. In the second use case, an escrow‑like process was tested: deposit tokens were exchanged for tokenized real‑world assets (RWAs), with transactions processed automatically via smart contracts.
One of the milestones here is that this is reportedly the first time that Swiss banks have executed legally binding interbank payments through the use of bank deposits on a public blockchain. The involvement of a public blockchain (with certain permissioned applications) is significant. The smart contracts used are said to provide technical security, verifiable processes, and regulatory compliance — all essential for banking operations.
However, the study also flagged limitations. Scalability remains a challenge, as does broader coordination: more banks, infrastructure providers, and authorities need to be involved for this model to scale up effectively. Some design adjustments will also be required.
UBS, through its digital assets lead Christoph Puhr, described the results as indicating that interoperability between traditional bank money and public blockchains is becoming feasible. He asserts that this could “enable innovation around tokenized assets” and help shape the future of financial systems domestically and internationally.
The significance of this comes in the context of growing global interest in combining blockchain technology with traditional finance (TradFi). Similar experiments are underway elsewhere: for example, a joint study by the U.S. Federal Reserve Bank of New York and the Bank for International Settlements (BIS) Innovation Hub Swiss Centre also recently tested smart contract use for central banks.
Source: Cointelegraph
Golden Trump statue holding Bitcoin erected outside US Capitol in memecoin stunt
A giant golden statue of former President Donald Trump clutching a Bitcoin was placed outside the US Capitol this week by a group calling themselves “memecoiners.” The stunt was organized via Pump.fun, a memecoin platform, and went live during a livestream event.
The 12‑foot (≈ 3.6 meter) statue, made from lightweight but firm foam, was set up near Union Square in Washington, DC, on the National Mall, which leads up to Capitol Hill — only about a mile from the White House.
According to the organizers, this statue serves as a tribute to Trump’s “unwavering commitment to advancing the future of finance through Bitcoin and decentralized technologies.” It aims to provoke conversation about government‑issued currency, financial innovation, and the intersection of politics and crypto.
The reveal coincided with a recent move by the US Federal Reserve to cut interest rates by 25 basis points — an event typically viewed as favorable to risk assets like Bitcoin, as lower borrowing costs often boost investor interest in non‑traditional financial assets.
While the stunt is theatrical, it also comes amid wider debates over Trump’s relationship with cryptocurrency. During his presidential run and while in office, Trump has expressed support for crypto, and his family’s financial connections in the sector have drawn both support and concern, especially over possible conflicts of interest and regulatory rollbacks.
The organizers behind the statue are mostly anonymous. They also launched a memecoin on Pump.fun, using livestreams to promote the token. Posts show how they built and moved the statue into place. They hope Trump might see it in person — even though he was travelling abroad at the time.
This is the latest in a series of public statuary or art installations near the National Mall referencing Trump. However, it’s among the first such installations done in support of him, rather than as protest.
Source: Cointelegraph