Democrat President Joe Biden’s Treasury Secretary Janet Yellen has declared that American taxpayers can “absolutely” afford to fund another war.
Speaking during an interview with the UK’s Sky News, reporter Wilf Frost asked Yellen if “America can afford another war at this time.”
“I think the answer is: Absolutely,” Yellen declared.
Yellen continued by arguing that the United States can “certainly” afford wars on two fronts because “the American economy is doing extremely well.”
The Treasury secretary sat down for the interview as the conflict between Israel and Hamas threatens stability in the Middle East and the U.S. continues to endlessly support Ukraine’s fight against Russia.
Ahead of a meeting of finance ministers in Luxembourg, Yellen said it remained too early to understand the economic ramifications of the latest conflict.
Oil and natural gas prices remain volatile amid growing concerns of a wider war in the Middle East.
The surge in oil prices since Hamas terrorists attacked Israel threatens to disrupt the fight against inflation, analysts have warned.
Brent crude, the international benchmark, has risen 0.4pc today to tip above $91 a barrel, after surging by nearly 6pc on Friday.
U.S.-produced West Texas Intermediate has gained 0.6pc to rise above $88.
Ipek Ozkardeskaya, the senior analyst at Swissquote Bank, said that further gains to oil prices “threaten to disrupt the central banks’ war against inflation, and weigh on an already-bad-looking global economy.”
Victoria Scholar, head of investment at Interactive Investor, added: “The Israel-Hamas war sent oil prices sharply higher last week, in a move that could derail inflation’s path back down towards more normal levels.
“WTI and Brent crude logged their biggest one-day percentage gains since April on Friday as the market tries to gauge the extent to which the conflict could involve oil exporters such as Iran.”
Nevertheless, Yellen points to a big easing in inflation with regard to funding the war machine.
She is now appealing to Republicans to fill the void left by the removal of former House Speaker Kevin McCarthy (R-CA) in order for greater financial support to flow.
“We do need to come up with funds, both for Israel and for Ukraine. This is a priority,” Yellen said.
“It’s really up to the House to find, seat a speaker and to put us in a position where legislation can be passed.”
“We stand with Israel,” she added.
“America has also made clear to Israel, we’re working very closely with the Israelis, that they have a right to defend themselves.
“But it’s important to try to spare innocent civilian lives to the maximum extent possible.
“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.”
Yellen’s remarks followed her visit to the IMF/World Bank conference in Morocco last week.
During the event, the much-discussed topic was the potential ramifications of the Israel-Hamas conflict.
Iran has warned Israel against a full-scale ground operation in Gaza in response to the Hamas terror attacks over a week ago.
Iran’s top diplomat Hossein Amirabdollahian has warned that his country could not remain an observer in that event.
“If the Zionist aggressions do not stop, the hands of all parties in the region are on the trigger,” he said, as Slay News reported earlier.
Amirabdollahian warned Israel that the nation will be hit with a “huge earthquake” if the Jewish state continues to retaliate against Hamas for the brutal terrorist attacks.
When asked if there was more the U.S. Treasury could do to pressure Iran from not getting involved in the war, Yellen responded:
“I know that there are diplomatic conversations that are taking place.
“But I’m not going to go into details about them.”