These and other planned initiatives follow a directive by finance and corporate affairs minister Nirmala Sitharaman to take swift remedial measures amid complaints of delay in transfers, according to people familiar with the matter.
The US Treasury is considered among the world's top safe-haven assets, as investors usually pile up these American government bonds in times of crisis as part of their shift to safety. The purchases lead to a fall in yields on the US Treasury and the dollar strengthening.
Indian banks, including HDFC Bank and SBI, are strategically reducing savings account interest rates by 25 basis points to protect profitability amid declining CASA ratios. This move aims to lower the cost of funds and improve net interest margins, even as deposit growth faces challenges. Experts anticipate limited fund migration despite depositors shifting towards higher-yielding term deposits.
Jerome Powell is openly challenging President Trump's economic policies and defending the Federal Reserve's independence. Powell criticized tariffs as harmful to the economy and asserted the Fed would not bow to political pressure. Trump swiftly responded, reiterating his desire to replace Powell, highlighting the ongoing tension over monetary policy and the Fed's autonomy.
China is leveraging its vast domestic market to aid companies grappling with trade tensions with the US, as stated by the Commerce Ministry. E-commerce giants like Alibaba and Tencent are launching initiatives to boost domestic sales for exporters.
