New Zealand Foreign Minister Tells Central Bank Governor Who Supported Powell: "Stay Out of US Affairs"

Foreign Minister Criticizes Governor Anna Breman on X
New Zealand Consulting Firm: "Would Have Been Disappointed If She Hadn't Signed"
BOJ Abstains... Appears to Align with Takaichi Government

Anna Breman, Governor of the Reserve Bank of New Zealand (RBNZ), who openly supported Jerome Powell, Chair of the US Federal Reserve (Fed), as he faces the threat of criminal indictment from the Donald Trump administration, has been publicly criticized by her own country's foreign minister.

According to the Financial Times (FT) on January 14 (local time), Winston Peters, New Zealand’s Foreign Minister, stated on the social networking service X (formerly Twitter) that "the RBNZ has no role to play in, and should not be involved in, US domestic politics." He reminded the governor to remain in New Zealand and focus on domestic monetary policy, adding, "If the governor had sought advice from the Ministry of Foreign Affairs and Trade, she would have received the same recommendation, but in fact, she did not."

Winston Peters, New Zealand Foreign Minister, posted on the social networking service X (formerly Twitter). Minister Peters X

On the previous day, January 13, the heads of central banks from 10 countries-including the European Union (EU), Canada, the United Kingdom, Australia, and South Korea-issued a statement on the European Central Bank (ECB) website expressing their support for Chair Powell. Lee Changyong, Governor of the Bank of Korea, also signed the statement.

However, Brad Olsen, Chief Economist at New Zealand-based consulting firm Infometrics, defended Governor Breman’s participation in the statement, saying, "Central bank independence in New Zealand is close to sacrosanct," and added, "If she had not signed, I would have been disappointed."

He further stated, "This is not a political statement but rather an expression of non-controversial support for the principle of 'central bank independence,'" predicting that the current controversy would not undermine the governor’s position. Governor Breman, who is also the first female governor in RBNZ history, was appointed as the new governor in September of last year.

The fact that the Governor of the Bank of Japan (BOJ) did not join the statement of criticism was also seen as a decision based on domestic political risks. Reuters analyzed that this reflected both the BOJ’s characteristic tendency to avoid political involvement and the Japanese government’s stance under Sanae Takaichi, which does not want to provoke the United States ahead of an early general election in February.

Takashide Kiuchi, former BOJ board member, told Reuters, "This decision is consistent with the BOJ’s established principles," but also pointed out, "It is also an example showing that (the BOJ) is not completely independent from the government." He added, "Criticizing US policy could expose the Japanese government to pressure from President Trump. The safest choice is to refrain from commenting on events happening abroad."

Meanwhile, Donald Trump, President of the United States and the person who raised allegations of "excessive spending on building renovations" against Chair Powell, urged Powell to step down soon on January 13, saying, "I hope he leaves that position soon." Chair Powell’s term runs until May.