President Trump signed a decree on the creation of a sovereign fund: what does this mean?
4 february 2025 в 06:37
President Donald Trump signed an executive order on Monday to begin the creation of a sovereign fund.
«We are going to create a lot of wealth for the fund, and I think it’s time for this country to have a sovereign fund», - Trump told reporters in the Oval Office, calling this development «very exciting».
He added, «I think in a short period of time we will have one of the largest funds».
Trump announced that his Treasury Secretary Scott Bessent and Howard Lutnick, his nominee for head of the Department of Commerce, will oversee the fund.
A sovereign fund (SF) is a state investment fund that manages a country’s financial assets and invests in various types of financial assets. These funds usually come from surpluses, such as revenues from natural resources (e.g. oil or gas), foreign currency reserves, or national savings.
Bessent explained that the creation of the fund «monetizes the active side of the U.S. balance sheet for the American people». He also stated that the sovereign fund will operate within 12 months, aiming to use U.S. assets for the benefit of Americans.
Some of the largest sovereign funds are managed by countries such as Norway, with its $ 1.8 trillion Norges Bank Investment Management; China, which manages $ 1.3 trillion China Investment Corporation; and the UAE, home to the $ 1.1 trillion Abu Dhabi Investment Authority.
The Trump administration provided few details on how the sovereign fund could be used to purchase TikTok.
President Trump mentioned that «we are going to do something, possibly with TikTok, or maybe not», - although he had previously hinted at the possibility that the U.S. government would play a role in the sale of this social media app.
TikTok was banned in the U.S. after lawmakers expressed concerns about the app’s security, fearing that the Chinese government could access data from American users and potentially spread disinformation. The ban was set to take effect on January 19, but the app went offline around 10:30 pm Eastern Time on January 18. However, in an unexpected turn of events, TikTok was restored the next day.
After TikTok resumed operations, the platform released a statement explaining that an «agreement» had been reached with providers to return the app to American users. The platform also thanked President Trump for his involvement in the matter.
At this time, it appears that no company has yet acquired TikTok from its parent company ByteDance. President Trump simply postponed the ban by signing an extension, delaying the deadline for a potential forced sale or closure
«We are going to create a lot of wealth for the fund, and I think it’s time for this country to have a sovereign fund», - Trump told reporters in the Oval Office, calling this development «very exciting».
He added, «I think in a short period of time we will have one of the largest funds».
Trump announced that his Treasury Secretary Scott Bessent and Howard Lutnick, his nominee for head of the Department of Commerce, will oversee the fund.
A sovereign fund (SF) is a state investment fund that manages a country’s financial assets and invests in various types of financial assets. These funds usually come from surpluses, such as revenues from natural resources (e.g. oil or gas), foreign currency reserves, or national savings.
Bessent explained that the creation of the fund «monetizes the active side of the U.S. balance sheet for the American people». He also stated that the sovereign fund will operate within 12 months, aiming to use U.S. assets for the benefit of Americans.
Some of the largest sovereign funds are managed by countries such as Norway, with its $ 1.8 trillion Norges Bank Investment Management; China, which manages $ 1.3 trillion China Investment Corporation; and the UAE, home to the $ 1.1 trillion Abu Dhabi Investment Authority.
The Trump administration provided few details on how the sovereign fund could be used to purchase TikTok.
President Trump mentioned that «we are going to do something, possibly with TikTok, or maybe not», - although he had previously hinted at the possibility that the U.S. government would play a role in the sale of this social media app.
TikTok was banned in the U.S. after lawmakers expressed concerns about the app’s security, fearing that the Chinese government could access data from American users and potentially spread disinformation. The ban was set to take effect on January 19, but the app went offline around 10:30 pm Eastern Time on January 18. However, in an unexpected turn of events, TikTok was restored the next day.
After TikTok resumed operations, the platform released a statement explaining that an «agreement» had been reached with providers to return the app to American users. The platform also thanked President Trump for his involvement in the matter.
At this time, it appears that no company has yet acquired TikTok from its parent company ByteDance. President Trump simply postponed the ban by signing an extension, delaying the deadline for a potential forced sale or closure
© Puhova Marina
