RBA's Sarah Hunter 'monitoring' the US amid political firestorm over Trump's Fed firing
The battle over Fed independence escalated overnight, as an ousted board member formally took legal action against the US President over her attempted dismissal.
A senior Reserve Bank official has confirmed the central bank is keeping a close eye on developments in the US following President Donald Trump’s dramatic push to fire Federal Reserve governor Lisa Cook.
But the RBA is not at panic stations about any local implications from the Trump administration that some claim risks undermining the independence of the world’s most influential central bank.
Reserve Bank chief economist Sarah Hunter chose her words carefully in an interview with Capital Brief this week, which took place following Trump’s claims he has the constitutional power to remove Cook following allegations of mortgage fraud but ahead of the developments overnight.
Cook filed a lawsuit overnight challenging Trump's efforts to dismiss her for alleged mortgage fraud, arguing the attempted firing violated her due process rights under federal laws and the US Constitution.
