Don Brash: Former NZ Reserve Bank Governor on Anna Breman signing a letter of support for US Federal Reserve Chair Jerome Powell

Don Brash says everyone should be concerned about political interference regarding matters at America's central bank. 

US Federal Reserve Chair Jerome Powell says he's now embroiled in a criminal investigation because he didn't cut interest rates as much as Donald Trump wanted. 

Trump denies involvement but is standing by calls for Powell to be replaced. 

RBNZ Governor Anna Breman signed a joint statement in support of Powell, saying he's highly respected, with an unwavering commitment to the public interest. 

But Winston Peters rebuked her for it, saying she needs to stay in her New Zealand lane and stick to domestic monetary policy. 

But Brash, a former New Zealand Reserve Bank Governor, strongly backs Breman, saying that Peters is in the wrong in this situation.  

He told Andrew Dickens it's in everyone's interests for the Federal Reserve to be able to make its own independent decisions, free from interference. 

Brash says the US dollar is the backbone of the world economy and the world monetary policy system, and anything that jeopardises that affects everyone. 

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
You thought that the drama between the Reserve Bank and
the government ended when Adrian All left, You'd be wrong. Yesterday,
the new Reserve Bank Governor An A. Bremen signed an
open letter of support for a US counterpart, Jerome Powell,
alongside heads of other central banks worldwide. And now Powell
is currently under criminal investigation by Donald Trump's Department of
Justice and what he believes to be a poet a

(00:38):
politically motivated probe. So Foreign Minister wism Peter's heard about
her signing. The leader then responded suggesting that Anna Bremen
stay in her New Zealand lane, saying it's not her
place to get involved in US domestic politics or New
Zealand foreign policy. So Don brash Is, the former Reserve
Bank governor previous leader of the Active National Party, joins
he now, according to Don good Morning, Andrew, is Anna

(01:01):
Bremen right or wrong to stand with Jerome Powell publicly?

Speaker 3 (01:06):
Oh, I strongly back A Bremen. Had she done this
on her own by herself, just made a statement about
US policy? Yes, I think mister Peters might have had
a good point. But she's doing it in concert with
almost every other major central bank in the world, Reserve
Bank of Australia, Bank of Canada, Bank of Englan, European

(01:27):
Central Bank, et cetera. And it cose along with all
the previous living Better Reserve Bank chairman and on Greenspan
for example, has signed some of the sort of statement.
So it's not just Anna Bremen's standing out on our own.
She's making a statement in concert with other central banks. Now,
I must say, when the statement first came out, the

(01:49):
Reserve Bank of New Zealand's name was not on it,
and I was frankly concerned why would she not be
on it? Later on it turned out that she was
in the middle of the night I guess when she
got the request, and her name was later added to it.
But now I strongly agree with what she was doing.
The US daughter, who's up to the backbone of the
world economy. It's the back by of the world monetary system,

(02:12):
and anything which jeopardizers has effected geopardizers, it hasn't affected everybody.

Speaker 2 (02:17):
Okay, So don we know the President of the United
States is a vengeful man. So a high ranking member
of the New Zealand administration taking a stand against him
could draw repercussions. So isn't it bad for New Zealand
inc And our economy?

Speaker 3 (02:33):
Well, as I said, that's that's what would have been
my view had she done it by herself. But she
didn't do it by herself. She did it with all
those other central banks. Bear in mind the fact that
ninety eighty nine the Reserve Bank of New Zealand Act
Past the law which basically gave the Braserve Bank independence
and monetary policy, and that was backed by every Member

(02:53):
of Parliament, every National Party MP, every Elebor Party MP
backed that law. So the Reserve Bank has some statutary
independence in monetary policy and I think she was simply
exercising that.

Speaker 2 (03:05):
Does this get Anna Bremen off on the wrong foot
with the government because she's only just started?

Speaker 3 (03:11):
Uh? Well, I mean, clearly was unhelpful that mister Peters
decided to attack her. But I think in this case
mister Peters was wrong all.

Speaker 2 (03:18):
Right, Don Bresh, and I thank you so very much
Don Bresh, former Reserve Bank governor.

Speaker 1 (03:23):
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