Trump Signs Executive Order to Establish U.S. Sovereign Wealth Fund

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On February 3, 2025, President Donald Trump signed an executive order directing the U.S. Treasury and Commerce Departments to establish a sovereign wealth fund for the United States.

This initiative follows through on a proposal Trump initially floated during his presidential campaign.

In a press conference held in the Oval Office, Trump emphasized the fund’s potential, stating, “We have tremendous potential,” and appointed Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick to lead the project.

The president indicated that this sovereign wealth fund could be leveraged for significant investments, including the potential acquisition of TikTok, a popular social media platform with approximately 170 million users in the U.S.

The establishment of a sovereign wealth fund is intended to serve various economic purposes, such as stabilizing the national budget and accumulating wealth for future generations.

These funds are typically financed through budget surpluses, foreign currency transactions, and proceeds from privatization efforts.

As discussions surrounding TikTok’s future continue, with national security concerns prompting scrutiny of its Chinese ownership by ByteDance, Trump mentioned he is in talks regarding its purchase and expects to make a decision soon.

The executive order aims to have the sovereign wealth fund operational within the next year.

This move marks a significant step in Trump’s economic strategy as he seeks to reshape U.S. investment approaches and address ongoing concerns about foreign ownership of American companies.

Further details on the fund’s structure and operational guidelines are anticipated in the coming months.

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