Jerome Powell, left, and Dr Anna Breman Photo: AFP / RNZ
RBNZ governor Anna Breman is one of the international central bankers who have signed a letter supporting US counterpart Jerome Powell, the Reserve Bank has confirmed.
Powell has been pushing back to maintain the Federal Reserve's independence after being served criminal charges by the Justice department.
The Reserve Bank has confirmed to RNZ chair Dr Breman is one of the international central bankers who have signed a letter backing Powell.
The charges relate to testimony last June regarding a multi-year project to renovate the Fed's office buildings.
President Donald Trump has been pushing for the central bank to drop cash rates.
Dr Anna Breman Photo: RNZ / Samuel Rillstone
The letter published on Wednesday (NZT), and signed by 14 central bankers so far, said Powell had served with integrity.
"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," the letter said.
'RBNZ believe in independence of central banks'
In a statement, the RBNZ said Dr Breman had signed the statement "as she and the RBNZ believe strongly in the independence of central banks".
The spokesperson pointed to the statement's emphasis on the independence of central banks being a cornerstone of price, financial and economic stability.
"The statement was discussed at the BIS Global Economy Meeting, which Dr Breman attended from 1-3am on 14 January," the spokesperson said.
"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."
Powell's response
CNN overnight 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.
Powell in a two-minute video on Sunday characterised the prosecution as a backlash against the central bank for serving the American public "rather than following the preferences of the President".
"I have served at the Federal Reserve under four administrations, Republicans and Democrats alike. In every case, I have carried out my duties without political fear or favour, focused solely on our mandate of price stability and maximum employment," Powell said in his statement.
Others to have signed the support letter include the chairs of central banks of Europe, England, Sweden, Denmark, Switzerland, Norway, Australia, Canada, South Korea, Brazil, South Africa, the board of directors for the Bank of International Settlements, and the general manager of the Bank for International Settlements.
It noted more central bankers may add their names over time.
Finance Minister Nicola Willis declined to comment on the matter.
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