Biden’s treasury sec says US can ‘absolutely’ afford more war

Her statements come as the Biden administration ramps up efforts to assist Israel amid rising tensions between the US ally and Iranian-backed Palestinian terrorist organization Hamas.

"This is the most threatening and challenging geopolitical environment that I have ever seen, and at the same time the US is in its weakest fiscal position since World War II with debt to GDP at 122 percent," Sky News' Wilfred Frost said, quoting a statement made by Paul Tudor Jones earlier this week. "Can America– can the West afford another war at this time?"

"I think the answer is absolutely," Yellen replied. "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 went on to suggest that, contrary to what Jones and others have said, the American economy is "doing extremely well."

She cited the fact that inflation, while still high, has come down "considerably," and that the Biden administration had passed measures it hopes will help the fiscal situation in the near to medium term.

The conversation then shifted to the war in Ukraine, which the US has contributed financially far more than any other nation.

"Clearly this is a war that Europe and the US are united on, but there's a big difference between the two," Frost said. "When you hear some member of Congress criticize the heavy lifting the US has had to do to support Ukraine, do you think they have a point there?"

"This is not charity for Ukraine," she replied. "It's in our interest, it's in Europe's interest. This is something that we can afford to do."