I understand that an NRE account exempts you from taxes in India. Does it also exempt you from taxes in the US?
Yes. It is income and in the US you are going to pay taxes on income. (MOST of it anyway). There is more that is needed to answer the question. If the earnings are from the sale of the account then you might have Capital Gain. As an accountant my best advice is to contact an accountant. Probably not much help for your question but there are too many variables to fully answer.
I do not know what an NRE account is, but there is no way that you can make investments through a foreign account that you control and not incur US tax liability on the income. There are lots of scam artists out there who will tell you you can (but I've never seen one mention India!), but you can't.
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