tl;dr
President Trump has signed an executive order to establish a federal sovereign wealth fund, directing the U.S. Treasury and Commerce Departments to create the fund, potentially for the purpose of acquiring TikTok. Treasury Secretary Scott Bessent anticipates the fund will be established within the n...
President Trump has signed an executive order to establish a federal sovereign wealth fund, directing the U.S. Treasury and Commerce Departments to create the fund, potentially for the purpose of acquiring TikTok. Treasury Secretary Scott Bessent anticipates the fund will be established within the next 12 months. Sovereign wealth funds are government-owned investment vehicles that typically invest surplus revenues, with the aim of long-term financial stability and economic growth. While certain U.S. states have their own sovereign wealth funds, the federal government has not previously utilized one. Numerous other countries, including Norway, China, United Arab Emirates, and Saudi Arabia, already operate sovereign wealth funds. President Trump just signed an executive order to create a federal sovereign wealth fund. Trump is ordering the U.S. Treasury and Commerce Departments to create the fund, stating it could be used to purchase the popular social media platform TikTok. Treasury Secretary Scott Bessent says the fund will be created in the next 12 months, reports Bloomberg. Sovereign wealth funds are government-owned investment funds. They typically invest surplus revenues, often from natural resources like oil, to grow wealth for the future. These funds diversify investments globally across stocks, bonds, real estate, and other assets. Their goal is to provide long-term financial stability, economic growth, and protection against economic shocks. Although states like Alaska have had their own sovereign wealth funds for years, the federal government itself has never utilized one. A number of nations already have sovereign wealth funds, including Norway, China, United Arab Emirates, Saudi Arabia, Singapore, Kuwait, Qatar, Australia, Russia, South Korea, and Chile.