US Treasury Secretary Janet Yellen said her country “absolutely” can afford to financially support both Israel and Ukraine in their military efforts, CNBC reports.

President Joe Biden reiterated in a tweet on Sunday Washington’s “unwavering support” for Israel in its war against the Palestinian militant group Hamas and said he had briefed Israeli Prime Minister Benjamin Netanyahu on US military support as well as efforts to protect civilians , as the conflict intensifies.

While the White House so far fully supports what it calls “Israel’s right to defend itself,” Biden said in an interview with CBS’ “60 Minutes” that Israel’s reoccupation of Gaza would be a “huge mistake” and that while Hamas must be completely eliminated, ” there must be a path to a Palestinian state.”

Secretary of State Anthony Blinken returned to Israel on Monday, the tenth day of Israel’s aerial bombardment of the Gaza Strip as part of an all-out siege that has cut off water, food and electricity to some 2 million people.

The US economy is doing “extremely well”, says Janet Yellen

Asked in an interview with Britain’s Sky News on Monday whether the US could afford to provide military support to Israel and Ukraine, which are at war with Russia, Janet Yellen said “absolutely yes”.

“America can certainly afford to support Israel and support Israel’s military needs, and we can and should support Ukraine in its fight against Russia,” Yellen said, adding that the U.S. economy is “extremely good.”

“Inflation was high and it worried households, now it has come down significantly. At the same time, we have the strongest labor market in 50 years with unemployment at 3.8%. And, at the same time, America, the Biden administration, passed legislation that will strengthen our economy in the coming years, in the medium term,” she continued.

Yellen said the need to free up funds for both allies was a “priority” and urged Republicans to appoint a new speaker so the legislation could pass after former Speaker Kevin McCarthy was ousted.

“We are with Israel. America has also made it clear to Israel that we are working very closely with the Israelis, that they have the right to defend themselves,” Yellen told Sky News’ Wilfred Frost.

“But it is important that we try to save the lives of innocent civilians as much as possible.”

It is too early to assess the economic consequences of the conflict in Israel

Israel’s siege, widely criticized by human rights groups, was in response to a brutal and large-scale terrorist attack by Hamas on October 7.

The death toll from the conflict has risen to at least 1,400 in Israel and more than 2,800 in Gaza. Israel’s military urged residents of northern Gaza to evacuate south as it vowed to step up its bombardment with broad evacuation orders. criticized humanitarian aid agencies on the ground.

Yellen said it was too early to assess the potential economic impact of the conflict in the Middle East, as oil prices remained volatile amid fears that neighboring powers in the region, such as Iran, could be drawn into the war between Israel and Hamas. (News.ro)