US Can Help Two Allies at Once, Yellen Says

Congress is about to receive a presidential request to approve a package combining aid to two allies embroiled in wars, the New York Times reports. President Biden "has made clear that he is going to go to Congress with a package of funding for Ukraine as well as continued support for Israel," National Security Adviser Jake Sullivan said Sunday on CBS' Face the Nation. That sounds expensive, but the cost is not a worrisome strain on the US right now, Treasury Secretary Janet Yellen said Monday.

In an interview with the UK's Sky News, Yellen was asked whether the US can afford to send military aid to Israel, which is fighting Hamas, and to Ukraine, which is fighting Russia. "The answer is absolutely," she said. The Treasury secretary said the US economy is doing "extremely well" overall, per CNBC. "Inflation has been high and it's been a concern to households, it's come down considerably. At the same time, we have about the strongest labor market we've seen in 50 years with 3.8% unemployment," Yellen said.

Yellen defended both causes and called on House Republicans to pick a speaker so the funding package can move along; the chamber is unable to approve anything until they do. "America can certainly afford to stand with Israel and to support Israel's military needs," she said, "and we also can and must support Ukraine in its struggle against Russia." It's too soon to assess the economic impact of the Middle East crisis, Yellen said, especially as it's not clear whether other nations will become involved. (More Janet Yellen stories.)