In a post on social media, Peters said the Reserve Bank had no role in US politics and should not involve itself. Photo: RNZ
Foreign Minister Winston Peters has urged the Reserve Bank governor to stay in her lane when it comes to United States domestic politics.
Anna Breman signed a letter of support for Jerome Powell overnight, after the Federal Reserve chair said subpoenas against him are retaliation for serving the American public rather than the preferences of the president.
In a post on social media, Peters said the Reserve Bank had no role in US politics and should not involve itself.
"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 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 RBNZ said it had no further comment in response to Peters' statement.
Asked whether any government ministers were told about the letter, including under the no surprises policy, the bank said Breman did not seek the Finance Minister's approval.
"A decision was needed in the early hours of the morning on 14 January, New Zealand time, and there was not enough time to inform the minister," a spokesperson said.
The Reserve Bank in a statement to RNZ earlier said Breman had signed the statement because she and the RBNZ believed strongly in the independence of 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 letter had also been signed by 13 other central bankers around the world so far, following Powell's statement on Sunday (US time). More may add their names over time.
US President Donald Trump has been calling for the Federal Reserve to cut interest rates for years, and has publicly boasted repeatedly that Powell would be gone before long.
In a two-minute video responding to the subpoenas served to the Federal Reserve, Powell said he had served under four administrations and "I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment".
He said the threat of criminal charges - apparently relating to his testimony about renovating the Reserve's offices - was a pretext, and in reality was a consequence of setting interest rates "based on our best assessment of what will serve the public, rather than following the preferences of the President".
CNN on Sunday reported Powell had kept quiet and remained loyal for years despite Trump calling him "every name and used every insult in the book, repeatedly threatening to fire him", but the subpoenas had forced his hand.
Peters declined an interview request from RNZ.
Finance Minister Nicola Willis declined to comment.
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