Trump signs executive order to create U.S. sovereign wealth fund

Today, President Donald Trump signed an executive order directing the creation of a U.S. sovereign wealth fund, fulfilling a campaign promise. The fund aims to utilize proceeds from national resources for strategic investments. Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick have been tasked with establishing the fund over the next 12 months.

While specific details about the fund's financing remain undisclosed, during his campaign, President Trump suggested that revenue from tariffs could be channeled into the fund to invest in domestic industries, defense, and medical research.

The establishment of this fund marks the first of its kind for the United States, aligning it with other nations like Saudi Arabia and Norway that have utilized sovereign wealth funds to manage and invest revenues from natural resources.

In addition to funding infrastructure and research initiatives, President Trump has indicated that the newly established U.S. sovereign wealth fund could be utilized to acquire companies deemed critical to national interests. Notably, he mentioned the potential purchase of TikTok, a popular social media platform owned by China's ByteDance, which has faced national security concerns in the U.S.

The creation of this fund aligns the U.S. with over 90 countries that manage sovereign wealth funds, collectively overseeing more than $8 trillion in assets.

While specific operational details are pending, the administration has emphasized the fund's role in monetizing U.S. assets for the benefit of American citizens. Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick are leading the initiative, with plans to establish the fund within the next 12 months.

The establishment of this fund marks a significant shift in U.S. economic strategy, aiming to leverage national assets for strategic investments and potentially reshape the country's approach to both domestic and international economic policy.