Foreign Affairs Minister Winston Peters has taken aim at the new Reserve Bank Governor Dr Anna Breman after she publicly backed her US counterpart, Jerome Powell. Photo / Mark Mitchell
Foreign Affairs Minister Winston Peters has taken aim at the new Reserve Bank Governor Dr Anna Breman after she publicly backed her US counterpart, Jerome Powell. Photo / Mark Mitchell
The Foreign Affairs Minister has rebuked Reserve Bank Governor Dr Anna Breman for signing a statement expressing “full solidarity” with US Federal Reserve chairman Jerome Powell after the US Justice Department launched an investigation into him.
In a social media post on Wednesday afternoon, Winston Peters said the ReserveBank was “statutorily independent” of the central Government on monetary policy but has “no role, nor should it involve itself in US domestic politics”.
“We remind the Governor to stay in her New Zealand lane and stick to domestic monetary policy. That would have been the advice of the Ministry of Foreign Affairs and Trade if the Governor had sought its advice, which she did not.”
The Reserve Bank of New Zealand is statutorily independent of Central Government on matters of monetary policy.
However, the RBNZ has no role, nor should it involve itself, in US domestic politics. We remind the Governor to stay in her New Zealand lane and stick to domestic…
The Reserve Bank would not respond to the Foreign Affairs Minister’s comment, while Finance Minister Nicola Willis’ office would not comment when approached.
The bank did release a statement earlier, prior to Peters’ intervention, saying Dr Breman had co-signed as “she and the RBNZ believe strongly in the independence of central banks”.
“The statement was discussed at the BIS Global Economy Meeting, which Dr Breman attended from 1-3am on 14 January. The statement was signed by a large number of central banks including the Reserve Bank of Australia, the Bank of England, the Bank of Canada, and all ECB central banks.
“Dr Breman’s signature on the statement indicates the support of the Reserve Bank of New Zealand, which is statutorily independent from the New Zealand Government.”
“The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve,” they said.
“It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability.
“Chair Powell has served with integrity, focused on his mandate and an unwavering commitment to the public interest. To us, he is a respected colleague who is held in the highest regard by all who have worked with him.”
Among those who signed the letter are Christine Lagarde, president of the European Central Bank; Bank of England Governor Andrew Bailey; Michele Bullock, of the Reserve Bank of Australia, and Breman.
Jerome Powell says the investigation is because of the Federal Reserve setting interest rates independently and not in response to US President Donald Trump's wishes. Photo / Saul Loeb
Powell has said the threat of criminal charges were a consequence of the Federal Reserve setting interest rates “based on our best assessment of what will serve the public, rather than following the preferences of the President”.
“This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
The investigation has been viewed by some in the US as retaliation for the Federal Reserve not bringing interest rates down as quickly as the President wished, though Trump has denied any connection to the probe.
Jamie Ensor is the NZ Herald’s Chief Political Reporter, based in the Press Gallery at Parliament. He was previously a TV reporter and digital producer in the Newshub Press Gallery office. He was a finalist in 2025 for Political Journalist of the Year at the Voyager Media Awards.
