Lavish gifts for foreigners.

"Kevin Warsh took office as chairman of the Board of Governors of the Federal Reserve System on May 22, 2026, for a four year term," and "also serves as chairman of the Federal Open Market Committee, the Federal Reserve System's principal monetary making body." Federal Reserve History. Warsh was expected to be dovish on interest rates, but "The Federal Reserve US interest rates between 3.5% and 3.75% after Kevin Warsh's first meeting in charge of the central bank." The Fed's conclusion was, "The Committee will deliver price stability." BBC. Which hints at a tightening bias. "The dollar surged in response and looks set for a period of relative strength. That is precisely what beleaguered Asian currencies did not need," wrote Daniel Moss. Japan's yen fell to 161 against the dollar. "Japan spent an unprecedented $74 billion in the month to 27 May to back the yen." On 16 June, "the Bank of Japan (BOJ) raised its so-called policy rate to 1% from 0.75% - a level not seen since 1995." "Japan's interest rates were cut aggressively in the 1990s to combat the fallout from a collapse in prices of assets like property and shares." "The bank has been gradually raising its interest rate since March 2024." BBC. Japan's consumer price inflation rose to a high of 4% in January 2025, but has been well below the BOJ's target of 2%. rateinflation.com. Currencies of Indonesia and India have also been under pressure. " Indonesia "has waded into the market repeatedly over the past year," But developments became more serious this month, when it (the rupiah) broke through the critical level of 18,000 per dollar and demand for the country's bonds crumbled. That pushed the Bank of Indonesia into an emergency quarter-point rate increase, followed by a hike of the same magnitude last Thursday." The Reserve Bank of India (RBI) has been extremely clever. As always. "The RBI is not thinking about raising interest rates at the moment, Governor Sanjay Malhotra said." It is too early to discuss rate hikes, he said. India Today. "India's foreign currency reserves dropped USD 9.985 billion to USD 671.625 billion during the week ended 12 June due to a sharp drop in gold reserves, the RBI said." TNIE. "The RBI sold a net $8.94 billion in the foreign exchange market in April, while its gold holding remained stable." "The Indian rupee slumped to a record low of 96.96 per dollar last month," and so, "The currency was then shored up by firm RBI intervention over multiple trading sessions." "The RBI's net outstanding forward dollar sales stood at $95.30 billion as of end-April, compared with $103.06 billion as of end-march." Reuters. The central government "promulgated an ordinance exempting foreign institutional investors and the Bank of International Settlements (BIS) from tax on interest income and capital gains arising from investment in government securities." The RBI will bear hedging costs for external commercial borrowings of public sector banks. TNIE. The RBI has allowed banks to offer higher interest on FCNR(B) accounts of non-resident Indians (NRI) and "RBI absorbs the currency hedging cost (estimated at around 3.5%)," so that "Banks are now offering 6% to 7.1% on USD FCNR(B) deposits." Investmates. FCNR(B) accounts are held in foreign currencies are fully repatriable, can be converted to any other currency, earn a higher rate of interest than in the parent country and are free of tax in India. cleartax. in. Who will pay for all this generosity by the RBI for foreigners? The hapless Indian taxpayer of course. While determined not to increase interest rate, so that savers can earn more, the RBI is now projecting a higher consumer price index (CPI) inflation at 5.1% for this financial year (ANI). So Indians are to suffer higher costs, get less interest on savings and reward foreigners with lavish gifts. The colonial mentality has not gone. Still subservient to foreigners. We are second class.