But NZ Foreign Minister tells Breman to stay in her lane
Reserve Bank of New Zealand (RBNZ) governor Anna Breman (pictured) has joined a growing chorus of international central bankers backing US Federal Reserve chair Jerome Powell, as President Donald Trump escalates his attacks and a criminal probe into the Fed chief gathers pace.
Breman is among the central bankers who signed a joint letter supporting Powell, after the US Department of Justice (DOJ) served grand jury subpoenas over his testimony on multi‑year renovations to the Fed’s Washington headquarters.
The letter, published on Wednesday (NZT), states:
“We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell. The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve.
“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."
Signatories include the heads of central banks in Europe, England, Australia, Canada, South Korea, Scandinavia, Brazil and South Africa, as well as senior figures from the Bank for International Settlements.
Powell has described the DOJ’s move as politically driven, calling the threat of a criminal indictment over the Fed’s renovation project a “pretext” to win presidential influence over interest rates.
However, the RBNZ governor’s decision to sign the solidarity letter has also sparked political pushback at home. New Zealand Foreign Minister Winston Peters on Wednesday publicly rebuked Breman for putting her name to the statement, underscoring the domestic sensitivities around central bank independence and the country’s relationship with the Trump administration.
Global chiefs warn on central bank independence
Central banks across the world have “joined together to declare that they stand in ‘full solidarity’” with Powell after the US launched its criminal investigation. The statement highlights the importance of independence in setting interest rates, warning that political interference could undermine price and financial stability.
Powell has been backed by former Fed chairs Janet Yellen, Ben Bernanke, and Alan Greenspan. Yellen called the probe “extremely chilling”, adding “it is the road to banana republic.”
Trump intensifies attacks as Powell pushes back
Trump has repeatedly criticised Powell over interest rate decisions and renovation costs, calling him “either incompetent or crooked” and telling supporters: “That jerk will be gone soon."
After largely staying silent, Powell released a two‑minute video pushing back, saying the threat of criminal charges stemmed from the Fed serving the public “rather than following the preferences of the president”.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said.
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