[Morning Briefing] Today's Cabinet meeting to review supplementary budget...Trump: "No decision yet on striking Iran"

◆ President Lee to preside over today's Cabinet meeting...first supplementary budget review of new administration

President Lee Jae-myung is presiding over a Cabinet meeting today at the presidential office in Yongsan. The meeting will review the second supplementary budget proposal aimed at revitalizing the people’s livelihood and economy. This marks the first supplementary budget drafted since the launch of the new government. The scale of this second supplementary budget is expected to exceed ₩20 trillion. The ruling party and government held a policy council the previous day and agreed to include support funds for the economy in the supplementary budget and distribute them to all citizens universally, rather than using a selective method. In accordance with Article 89 of the Constitution, government budget bills such as the supplementary budget must be reviewed by the Cabinet before submission to the National Assembly.

◆ Trump: "No final decision yet on Iran strike"

U.S. President Donald Trump said on the 18th local time at the Oval Office in the White House that the United States had not yet decided whether to join Israel in striking Iran. President Trump stated, "I want to make the final decision one second before the deadline," adding, "because the situation changes. Especially in war." He also said, "I’m not seeking conflict," but noted, "However, if the choice is between conflict and (Iran) possessing nuclear weapons, you have to do what needs to be done." Regarding a question about whether the regime of Ayatollah Seyyed Ali Khamenei, which has led Iran’s theocracy, could collapse, President Trump replied, "Of course. Anything can happen." When asked if the "door to diplomacy was closed," he answered, "No."

◆ U.S. Fed holds rates again amid tariff uncertainty

The Federal Reserve System, the U.S. central bank, cited concerns over uncertainty stemming from the Trump administration’s tariff policy and decided to maintain the benchmark interest rate at 4.25–4.50% as of the 18th local time. After its decision, the Fed released a statement saying it is too early to achieve its dual goals of maximum employment and maintaining inflation at 2%. As a result of the Fed's decision, the interest rate gap between Korea (2.50%) and the United States remains at a maximum of 2 percentage points.

◆ New York stock market ends slightly lower as Fed remains cautious

The Federal Reserve System held its benchmark interest rate steady again on the 18th and maintained its previous outlook on rates, leading U.S. stock markets to finish flat. On this day, the Dow Jones Industrial Average fell by 0.1%, and the S&P 500 declined by 0.03%. The NASDAQ Composite Index, centered on tech stocks, rose by 0.13%. International gold prices also remained steady. On the New York Mercantile Exchange, the near-month gold futures closed at $3,408.1 per ounce, up 0.03% from the previous session. International oil prices rose slightly. On the Intercontinental Exchange, near-month Brent Crude futures settled at $76.70 per barrel, rising 0.3%, and on the New York Mercantile Exchange, West Texas Intermediate (WTI) futures closed at $75.14 per barrel, up 0.4% from the previous session.

◆ Police issue third summons today...Yoon expected to refuse

On the 19th, the police are expected to issue a third summons notice to former President Yoon Suk-yeol, but he is likely to refuse. On the 17th, Yoon's side submitted a written statement of intent not to attend. Their main argument is that there is no legal basis for the charges and that Yoon did not participate in or order any of the alleged actions. They also claim there is no material justifying the need or validity of the police investigation. Yoon has been booked on charges of instructing the presidential security service to prevent his arrest (obstruction of special government duties). Four days after martial law, on December 7 last year, Yoon is also accused of directing the deletion of information related to secure phones by former Special Warfare Commander Gwak Jong-geun, former Capital Defense Commander Lee Jin-woo, and former Defense Security Command Commander Yeo In-hyung (abuse of authority under security law). Previously, police requested Yoon’s appearance on June 12, but he did not comply.

Choi Su-jin, Hankyung.com reporter naive@hankyung.com