
Listen To Story Above
In a significant policy development, President Trump signed an executive order Monday directing the establishment of America’s first-ever Sovereign Wealth Fund, with Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick leading the initiative.
“This charges your secretary of the Treasury, Scott Bessent, and your Secretary of Commerce, Howard Lutnick, to begin a process that will hopefully result in the creation of an American Sovereign Wealth Fund,” announced Will Scharf, the President’s staff secretary, during the signing ceremony.
“It’s a very exciting event. We’re going to have a Sovereign Wealth Fund, which we’ve never had. We have a lot of things that create wealth, and you’re seeing that over the last two weeks; I think we’ve created more wealth,” President Trump said before signing the order. “Other people have created de-wealth, the people, my predecessors. We’re creating a lot of wealth.”
BREAKING: Trump signed an Executive Order establishing a first-of-its-kind "Sovereign Wealth Fund," which will invest vast amounts of money into national development projects like highways, new airports, etc.
THIS IS BEAUTIFUL!!!
pic.twitter.com/FbVE0HA0Sg— George (@BehizyTweets) February 3, 2025
Secretary Bessent expressed enthusiasm about the initiative, confirming plans for implementation within a year. “We’re going to stand this thing up within the next twelve months,” he stated. He outlined the fund’s approach, explaining, “We’re going to monetize the asset side of the U.S. balance sheet for the American people; we’re going to put the assets to work. We’re going to study best practices as done around the world. It’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.”
Commerce Secretary nominee Lutnick emphasized the potential benefits of leveraging government business relationships. “The extraordinary size and scale of the U.S. government and the business it does with companies should create value for American citizens,” Lutnick stated. “If we are going to buy 2 million 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.”
This is massive. 🔥 Trump just created a Sovereign Wealth Fund..
IMHO this is one of the most significant moves he’s made.What is a Sovereign Wealth Fund:
“A sovereign wealth fund (SWF) is a state-owned investment fund composed of financial assets such as stocks, bonds,… pic.twitter.com/TqFPJqPyUT
— NewsTreason Channel 17 (@NewsTreason) February 3, 2025
Lutnick further expressed confidence in the partnership with Bessent, saying, “Bringing all these things together, I think, will create– Scott and I will create an amazing Sovereign Wealth Fund for you, sir.”
The discussion included potential involvement with TikTok, as President Trump suggested incorporating U.S. equity in the company into the fund. The concept of sovereign wealth funds, common in several nations, involves investing national reserves to generate returns for various purposes, including deficit reduction and debt management.
Notable examples include Norway’s Government Pension Fund, currently the world’s largest with $1.7 trillion in assets, serving a population of 5.5 million. The Norwegian model allows limited annual spending, contributing approximately 20% to the national budget.
Other nations operating sovereign wealth funds include China, Singapore, New Zealand, and Saudi Arabia. Questions remain about the proposed U.S. fund’s transparency measures and safeguards against political favoritism in investment decisions.