US Treasury Secretary says latest Gaza war poses concerns to American economy

AP , Wednesday 11 Oct 2023

United States Treasury Secretary Janet Yellen says the war between Israel and Hamas poses “additional concerns” to the American economy, but she still expects inflation can be contained without causing a recession.

File Photo- US Treasury Secretary Janet Yellen. AP


Speaking to reporters Wednesday on the sidelines of the International Monetary Fund and World Bank annual meetings in Marrakech, Morocco, Yellen said the Biden administration’s focus was on people “affected by these barbaric attacks on Israel”.

She also said that US support for Ukraine and Israel “remains the absolute priority” for Washington, adding that "Financing Ukraine on the military level or in support of its economy and resources directed to Israel constitutes absolute priorities for the (US President Joe) Biden administration. We have been completely clear from the beginning with Congress and we believe in broad support from both the Democratic and Republican parties."

A day earlier, IMF chief economist Pierre-Olivier Gourinchas said it was “too early” to assess the impact on global economic growth from the days-old war between Israel and the Palestinian group Hamas in Gaza. He did note that oil prices have risen by about 4% in the past several days.

Oil prices edged up on Wednesday slightly as the market stabilized after Monday's surge fuelled by Hamas's attack on Israel that sparked fears of a wider conflict in the crude-rich Middle East.


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