Janet Yellen has told Sky News the United States can "certainly" afford wars on two fronts, as the conflict between Israel and Hamas threatens stability in the Middle East and the US continues to support Ukraine's fight against Russia.

Those elements were key factors behind the energy-driven cost of living crisis that started facing Western economies last year.

She pointed to a big easing in inflation but appealed for Republicans to fill the void left by the removal from office of House of Representatives speaker Kevin McCarthy, in order for greater financial support to flow.

Ms Yellen's remarks followed her visit to the IMF/World Bank conference in Morocco last week when the much-discussed topic was the potential ramifications of the Israel-Hamas conflict.

Read more:'Bodies of tortured dead show Hamas has changed'Couple's desperate messages before massacre revealedHow the war has escalated since shocking surprise attack

When asked if there was more that the US Treasury could do to pressure Iran from not getting involved in the war, Ms Yellen responded: "I know that there are diplomatic conversations that are taking place.

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