A stooge in the US Fed could blow out inflation in Australia – but Trump is unlikely to get his way

If Donald Trump is able to assert control over the US Federal Reserve, the RBA might be forced to cut interest rates to combat a more expensive Australian dollar, experts say. Photograph: Shawn Thew/EPA

The Reserve Bank of Australia could lose some control over its ability to set interest rates independently if Donald Trump is successful in his bid to take control of the US central bank, experts warn.

Ten days after the US Department of Justice announced a criminal investigation into the Federal Reserve’s chair, Jerome Powell, the supreme court on Wednesday will hear arguments in a legal case that will determine whether the president has the power to fire Lisa Cook, a member of the Fed’s board of governors.