Winston Peters tells RBNZ governor to ‘stay in her lane’ over supporting US Fed boss Jerome Powell

Wednesday, 14 January 2026

Foreign Minister Winston Peters has rebuked Reserve Bank governor Anna Breman for adding her name to a list of global central bankers standing in solidarity with US Federal Reserve chairperson Jerome Powell.

Late last week, the US Department of Justice instigated a criminal investigation into Powell and the Fed over his testimony about cost overruns for renovations at the bank.

Powell hit back, saying the probe was not really about his testimony but “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 Donald Trump.

Breman, who took up the top role at New Zealand’s Reserve Bank in December, joined other central bankers around the world in releasing a statement on Wednesday morning expressing their “full solidarity” with Powell.

The statement — also signed by Christine Lagarde, president of the European Central Bank on behalf of the ECB Governing Council and Bank of England governor Andrew Bailey and the heads of the central banks of Korea, Canada and Australia — sought to defend central bank independence.

But Peters has since posted a tweet to “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,” he wrote.

“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,” he wrote.

A spokesperson for Finance Minister Nicola Willis replied “no comment” when asked if Willis agreed with Peters’ view that Breman’s support for the central bank letter was inappropriate.

A Reserve Bank spokesperson said it had no comment on Peters’ remarks. But their statement implied that if Breman had consulted with anyone, it would have been with Willis, rather than Mfat.

“Dr Breman signed the statement as she and the RBNZ believe strongly in the independence of central banks,” the spokesperson said in a statement issued ahead of Peters’ rebuke.

“Dr Breman did not seek the Finance Minister’s approval as 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. Her signature on the statement indicates the support of the Reserve Bank of New Zealand, which is statutorily independent from the New Zealand Government.”

Former Reserve Bank governor and National Party leader Don Brash backed Breman’s decision to stand in support of Powell.

“When the list first came out, early this morning, she wasn’t on it and I was concerned about that, because other central banks of reputation around the world have signed it.

“For New Zealand not to have signed it, I think would have been a bad mistake,” Brash said. “So I think that Mr Peters is quite in the wrong on this issue.”

Brash, in turn, suggested it was Peters who was drifting out of his lane. “He’s criticised what she's done and I don’t think it’s a foreign policy issue; I think it’s a central banking issue.”

Trump had been extremely unwise to attack Powell, he said.

“With federal debt at the level that it is in the United States, the US government is crucially influenced by the long-term interest rate on their bonds. Anything which suggests to US bondholders the US is going to have higher inflation is going to drive those interest rates higher, to great disadvantage of both the government and the American people.”

Trump denied he had been directly involved in the DoJ investigation of Powell but continues to lambast Powell, saying he “either is incompetent or he’s crooked”.

On a tour of a Ford auto plant in Michigan, he said “that jerk will be gone soon”, referring to Powell.

The central bankers’ statement that Breman supported expressed their “full solidarity” with Powell.

“The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve,” said the statement, published on the website of the European Central Bank.

“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.”

Markets have wobbled in the last 24 hours as they absorb the many and various Trump pronouncements, with Powell being chief among those causing some disquiet.

AP reported on Wednesday morning that Bank of New York Mellon Corporation chief executive officer Robin Vince said going after the Fed’s independence “doesn’t seem, to us, to be accomplishing the administration’s primary objectives for things like affordability, reducing the cost of borrowing, reducing the cost of mortgages, reducing the cost, of, everyday living for Americans.”

“Let’s not shake the foundation of the bond market and potentially, do something that could cause interest rates to actually get pushed up, because somehow there’s lack of confidence in the Fed’s independence,” Vince added.

JPMorgan Chase CEO Jamie Dimon echoed similar comments to reporters.

Trump has also caused ructions by proposing a one-year, 10% cap on the interest rate on credit cards, prompting bank CEOs to warn the White House Trump’s actions could do more harm than good to the American economy and they may be forced to push back on the initiative.

The average interest rate on credit cards is between 19.65% and 21.5%, according to the Federal Reserve and other industry tracking sources. A cap of 10% would likely cost banks roughly $100 billion in lost revenue per year, researchers at Vanderbilt University found.