Washington, Feb 4: United States President Donald Trump has signed an executive order for the creation of a sovereign wealth fund within the next year, saying it could potentially buy the short video app TikTok, Al Jazeera said.
Trump offered on Monday little in the way of detail, and it was unclear how such a wealth fund would work. Typically, such funds rely on a country’s budget surplus to make investments, but the US government operates at a deficit. Its creation also would likely require approval from Congress, the Qatar-based news channel reported.
“We’re going to create a lot of wealth for the fund,” Trump told reporters. “And I think it’s about time that this country had a sovereign wealth fund.”
Trump had previously floated such a government investment vehicle as a presidential candidate, saying it could fund “great national endeavors” like infrastructure projects such as highways and airports, manufacturing, and medical research.
Administration officials did not say how the fund would operate or be financed, but Trump has previously said it could be funded by “tariffs and other intelligent things.”.
Treasury Secretary Scott Bessent told reporters the fund would be set up within the next 12 months.
“We’re going to monetize the asset side of the US balance sheet for the American people,” Bessent said. “There’ll be a combination of liquid assets, assets that we have in this country, as we work to bring them out for the American people.”
Former President Joe Biden’s administration also was considering establishing such a fund before Trump’s election in November, according to The New York Times and Financial Times, reported Al Jazeera.