Australian treasurer backs RBA chief's show of solidarity with Fed's Powell

SYDNEY, Jan 16 (Reuters) - Australia's Treasurer on Friday threw his support behind the head of the country's central bank for standing in solidarity with embattled Federal Reserve Chair Jerome Powell, saying ?the decision was "appropriate".

The Trump administration threatened Powell with a criminal indictment after ?a probe into the renovation of the Fed's headquarters, ?drawing a combative response from the Fed ?chair who ?called it ?a "pretext" to win ?presidential influence over interest rates.

The administration's move reignited concerns ?about central bank independence and ?sparked pushback from global central bank chiefs. Reserve Bank of Australia Governor Michele Bullock joined ?her counterparts in Europe, ?England, Canada ?and New Zealand in signing a statement "in full solidarity with the Federal Reserve System and its Chair ?Jerome H. Powell."

However, Reserve Bank of New Zealand Governor Anna Breman, who only started her term in December, was rebuked by Foreign Minister Winston Peters over the decision. Peters from the populist New Zealand First ?party ?said the RBNZ had no role in U.S. politics.

At a briefing in Queensland, Treasurer Jim Chalmers ?said Bullock had informed him of the decision and he told her he considered that to be "entirely appropriate".

"I know Jay Powell," said Chalmers. "He strikes me as a very professional, very diligent public servant in the United States."

"The specific issues at ?play here are a matter for the Americans but the Australian position, the government's position and the governor's position are very clear."

(Reporting ?by Stella Qiu; Editing by Jacqueline Wong and Shri Navaratnam)