: Yellen says the U.S. can afford to support two wars simultaneously

Treasury Secretary Janet Yellen said the U.S. can afford supporting two countries — Israel and Ukraine — simultaneously.

“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 said in an interview with Sky News, a U.K. television station.

The White House is seeking Congressional funding to aid both countries, which has been difficult given the House of Representatives at the moment cannot agree on a speaker. National Security Advisor Jake Sullivan on CBS’s “Face the Nation” said the cost of the aid it’s seeking would be “significantly higher” than $2 billion.

Her remarks come as investors have staged something of a buyer’s strike on U.S. Treasurys, with bond auctions including that of a 30-year note
seeing tepid demand last week. Growing budget deficits have been cited as one reason for the recent bond yields, alongside Federal Reserve quantitative tightening as well as its interest-rate hike campaign.

The Congressional Budget Office said last week that the federal budget deficit was $1.69 trillion in the September-ending fiscal year, up from $1.38 trillion the previous year. Revenue fell 9% while outlays fell by only 1%.

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