Supporting 2 Wars Is Feasible Despite US Debt Surge, Says Yellen

After the United States recently accumulated hundreds of billions in debt and directed over $75 billion to Ukraine, U.S. Treasury Secretary Janet Yellen assured on Monday that the nation is financially equipped to back two wars.

U.S. Can ‘Certainly Afford’ 2 Wars Yellen Insists Amid Rising Debt and Possible Mid-November Shutdown

Last month, just three hours shy of a potential U.S. government shutdown, President Joe Biden ratified a bill ensuring a 45-day operational continuation. Yet, if bipartisan agreement on spending remains elusive, another shutdown looms by mid-November. Speaking with the U.K.’s Sky News, Treasury Secretary Janet Yellen delved into the Ukraine-Russia conflict and the Israel-Hamas dispute.

In the conversation, Yellen conveyed her hesitance to gauge the economic repercussions of the Middle East’s recent turmoil but acknowledged the uptick in energy prices. Contrasting her remarks from last May, where she warned of a possible U.S. debt default by June, Yellen, during her interview Monday, highlighted the feasibility of the U.S. funding both wars in Ukraine and Israel.

“We do need to come up with funds, both for Israel and for Ukraine. This is a priority,” Yellen told Sky News host Wilfred Frost. “It’s really up to the House to find, seat a speaker and to put us in a position where legislation can be passed,” she added.

Yellen elaborated:

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.

The latest statements from Yellen echo her earlier stance on Ukraine. Before the G20 Summit in July, she underscored that bolstering Ukraine was imperative for the global economy’s health. When questioned about the U.S. Treasury’s capability to deter Iran from intervening, Yellen responded:

I know that there are diplomatic conversations that are taking place. But I’m not going to go into details about them.

Over the past ten years, the national debt has been on a steady climb. Yet, with the recent upticks in interest rates and inflation, the interest expenses are now swelling. As of October 16, 2023, at 1:20 p.m. Eastern Time, usdebtclock.org shows the U.S. debt standing at a staggering $33.56 trillion. Yellen’s conversation occurred right before her rendezvous with finance magnates in Luxembourg.