America did. And the Vatican, too.
The American excuses for not taking German refugees before the Holocaust but long after the persecution started were many and varied, but certainly in effect was anti-Semitic. Anti-Semitism was quite prevalent in the US.
The Vatican knew of the Holocaust and other Nazi atrocities and deliberately looked the other way. Italy was occupied by the Germans and the Vatican was completely dependent upon their good will. For much of the war the Pope walked a tightrope and did, indeed, largely ignore the problems of the Jews.
There's been no explanation I find suasive for why the Pope didn't flee Italy and take a strong moral stand. I think he had that obligation. As did America.
Arf