In a recent interview, US Treasury Secretary Janet Yellen made a bold statement that has sparked discussions worldwide. She declared that the United States can “absolutely” afford to financially support both Israel and Ukraine in their respective war efforts.
Context of the Statement
The statement came amidst the ongoing conflict between Israel and the Palestinian militant group Hamas, and the continuing war between Ukraine and Russia. Yellen’s comments were in response to a question about whether the US could afford to provide military support to both Israel and Ukraine.
The US Economy’s Current State
Yellen’s confidence in the US’s financial capabilities stems from her belief that the US economy is doing “extremely well”. She pointed out that inflation, which had been a concern for households, has come down considerably. At the same time, she highlighted that the US is experiencing one of the strongest labor markets it has seen in 50 years, with an unemployment rate of 3.8%.
The Need for Legislative Support
Yellen emphasized the need for legislative support to release funds for both allies. She called it a “priority” and urged Republicans in the House of Representatives to seat a speaker so that legislation can be passed. This call comes after the ousting of former speaker Kevin McCarthy.
The US’s Stance on the Conflicts
The US has reiterated its “unwavering support” for Israel in its war against Hamas. President Joe Biden has provided Israeli Prime Minister Benjamin Netanyahu with updates on both US military support and efforts to protect civilians as the conflict escalates. However, Biden also noted in an interview that an Israeli re-occupation of Gaza would be a “big mistake” and that there “must be a path to a Palestinian state”.
In terms of Ukraine, Yellen stated, “America can certainly afford to stand with Israel and to support Israel’s military needs and we also can and must support Ukraine in its struggle against Russia”.
Conclusion
Yellen’s statement underscores the US’s commitment to its allies and its readiness to provide financial support despite ongoing conflicts. It also highlights the strength of the US economy and its resilience in times of global unrest. However, it remains to be seen how these conflicts will unfold and what impact they will have on global politics and economies.
