Trump signs executive order to create a sovereign wealth fund

President Donald Trump signed an executive action to create a US sovereign wealth fund, a promise he made during his campaign. He tasked Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick with leading the initiative.

Usually, countries that manage large foreign exchange revenue generated from commodities like oil establish sovereign wealth funds. The fund would invest the revenue into financial assets like stocks, bonds, real estate or startups.

It is expected to be established within a year. Trump suggested the fund could be used to buy TikTok.

Though details like where the money would be obtained were not mentioned in the order, Trump’s advisers, including Elon Musk and Stephen Feinberg, have discussed leveraging US economic power.

The fund would invest in manufacturing, defense, and research, drawing inspiration from state funds like Alaska’s and North Dakota’s, which manage billions from commodities.