US Accountability in Ukraine’s Defeat: Janet Yellen Stresses Impact of Funding Halt

In a critical development, Treasury Secretary Janet Yellen emphasized the pivotal role of US lawmakers in determining Ukraine’s destiny, highlighting the current hindrance in securing $61 billion in essential funding requested by the Biden administration for the beleaguered Eastern European nation.

Yellen, addressing reporters during her travel to Mexico City, expressed the urgency of the situation, cautioning that the failure to secure the required funding could lead to Ukraine’s defeat. She underscored that, while Kyiv allocates its tax revenue primarily to military defense against Russian forces, crucial services such as schools and hospitals heavily rely on US financial support. The White House has indicated that the existing US funding is expected to deplete by the end of the year.

The deadlock revolves around Republicans demanding substantial concessions on immigration policies from Democrats and the White House as a condition for approving the new aid package. This impasse has led Ukrainian President Volodymyr Zelenskiy to cancel plans to address the US Senate via videoconference.

Despite the US having already provided substantial military and non-military aid to Ukraine since the Russian invasion in February 2022, Yellen stressed the urgent need for additional funding, noting that Ukraine is running out of financial resources. She highlighted the contributions of US allies, surpassing the current US support, and emphasized the critical role of sustained assistance.

Yellen’s journey to Mexico also involved discussions on trade ties and enhanced collaboration with Mexican authorities to combat the illicit supply of fentanyl into the US.

Addressing the US economic outlook, Yellen criticized economists who had predicted that only a recession could curb inflation. She dismissed the notion that high unemployment is a prerequisite for addressing inflation and refuted the predictions of economists, including Lawrence Summers, who had suggested a significant increase in joblessness was necessary to achieve the Federal Reserve’s 2% inflation target.

Yellen pointed out that the PCE price index, the Fed’s preferred measure of price pressures, fell to 3% in the 12 months through October. While unemployment has experienced a modest increase in recent months, it has remained below 4%, contradicting earlier predictions. Yellen asserted that the evolving economic conditions indicate that the conventional wisdom regarding the relationship between unemployment and inflation may need reassessment.

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