U.S. Treasury Secretary Janet Yellen says the United States can afford to continue funding the Ukrainian military in addition to new funding promises for Israel in its fight against the Hamas terrorist group. “America can certainly afford to stand with Israel and to support Israel’s military needs,” Yellen said in ahead of a meeting with global finance ministers in Luxembourg. “And we also can and must support Ukraine in its struggle against Russia.”
Yellen urged Republican lawmakers in the House of Representatives to choose a speaker so that additional funds can be appropriated for both Ukraine and Israel. “It’s really up to the House to find, seat a speaker and to put us in a position where legislation can be passed,” Yellen said.
The inflation criss that has plagued the United States since President Joe Biden took office has resulted in the Federal Reserve rapidly increasing interest interest rates in response. As a result, the cost of servicing government debt has skyrocketed. According to the Congressional Budget Office (CBO), the Biden administration paid $711 billion on net interest payments this year – an increase of $177 billion, or 33 percent, from fiscal year 2022. The average interest rate on Federal debt has gone from 1.5 percent in 2022 to nearly 3.0 percent today.
September’s economic data suggests that – while down overall from its peak – inflation remains elevated and well above the Federal Reserve’s 2 percent target. Some economists believe that that September’s ‘sticky’ inflation number will force the Federal Reserve to increase interest rates one more time before the end of the year – making any supplemental funding for the war efforts in Ukraine or Israel even more costly in terms of the debt it would generate.