President Trump has signed an executive order to establish a sovereign wealth fund, aiming to create an investment vehicle similar to those in fiscally healthy nations. This fund could help finance the acquisition of TikTok amid ongoing ban discussions. The Treasury and Commerce Departments are tasked with developing a plan within 90 days. While the concept of sovereign wealth funds is usually affiliated with surplus-rich countries, the U.S. faces budget deficits, raising questions about funding sources. Trump’s administration proposes potential investments linked to government dealings, such as vaccine purchases, enhancing support for American welfare.
Mr. Trump discussed the idea during the presidential campaign, floating the possibility that money collected from imposing new tariffs could be invested in projects around the country.
Sovereign wealth funds are popular in oil-rich countries like Norway and Saudi Arabia that can invest large budget surpluses in projects around the world.
Howard Lutnick, Mr. Trump's pick to lead the Commerce Department, suggested that the government could take a stake in companies it does business with.
If we are going to buy two billion Covid vaccines, maybe we should have some warrants and some equity in these companies and have that grow for the help of the American people.
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