President Donald Trump signed an executive order to establish a U.S. sovereign wealth fund. The initiative is being led by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.
The executive order directs the Treasury and Commerce Departments to develop a detailed plan within 90 days, outlining funding mechanisms, investment strategies, fund structure, and a governance model. While specific details are pending, Secretary Bessent indicated that the fund aims to "monetize the asset side of the U.S. balance sheet for the American people," potentially involving a mix of liquid assets and other domestic holdings.
President Trump has suggested that the fund could be used for various investments, including infrastructure projects and medical research. He also mentioned the possibility of the fund acquiring assets like TikTok, the popular short video app.
It's important to note that the establishment of such a fund would likely require congressional approval, especially given the U.S. operates at a budget deficit. The administration has previously mentioned that revenues from tariffs and other sources could be used to capitalize the fund. Show Less
