In an exclusive interview with Sky News, Treasury Secretary Janet Yellen reaffirmed staunch US support for Israel and Ukraine despite economic and political uncertainties.
Yellen definitively stated that the United States can “certainly afford wars on two fronts,” as conflict between Israel and Hamas escalates while US support for Ukraine persists.
JUST IN: 🇺🇸 US Treasury Secretary Janet Yellen says America can "absolutely" afford to fund another war.— Watcher.Guru (@WatcherGuru) October 16, 2023
Yellen states its too early to grasp the economic impact of Middle East tensions
Speaking ahead of a key finance meeting in Luxembourg, Yellen stated that it remains too early to grasp the full economic impact of the latest Middle East tensions. However, she emphasized that America’s strong fiscal position will ensure the continued backing of allies abroad.
Yellen noted volatile oil and gas prices stemming from the conflict as factors behind the ongoing cost of living crisis facing Western nations. But she appealed for Republicans to resolve the power vacuum after the dramatic removal of House Speaker Kevin McCarthy to allow passage of urgently needed Ukraine aid.
“We stand with Israel. America has also made it clear to Israel, we’re working very closely with the Israelis, that they have a right to defend themselves,” Yellen commented. She added that the US must also spare civilian lives and continue assisting Ukraine against Russian aggression.
Yellen’s remarks highlight the complex balancing act facing US policymakers. Simultaneously supporting Ukraine financially and militarily while also affirming Israel’s security needs amid elevated Middle East tensions will challenge America’s economic fortitude.