Nepal Looks To Rebuild As Flood Death Toll Rises | Insight with Haslinda Amin 8/28/2026

Summary

Raghuram Rajan discusses Fed policy, inflation, and rising long-term yields ahead of Kevin Warsh's Jackson Hole speech, warning that the Fed is behind the curve and that AI investment risks are building. The program also covers Nepal's devastating flood and reconstruction costs, with Finance Minister Swarnim Wagle outlining damage, funding sources, and Nepal's working hydropower export relationship with India. An India segment reviews slowing growth and potential RBI rate pressure.

• Raghuram Rajan argues the Fed should already be raising rates because financial conditions are not restrictive.
• Rajan expects long-term government bond yields to keep rising on deficits, spending needs, and competition for savings.
• Rajan flags AI data-center and compute investment as an area of emerging return and demand risk.
• Nepal faces a multibillion-dollar reconstruction effort after a deadly flash flood near the Chinese border.
• Nepal's finance minister says hydropower exports to India are working well, with India committed to buy up to 10,000 MW over ten years.
• India's growth likely slowed in the latest quarter, but it remains the fastest-growing major economy.
• The RBI may face pressure to hike rates if US yields continue rising and the rupee remains under pressure.