Trump orders creation of US sovereign wealth fund, says it could buy TikTok
If created, the sovereign wealth fund could place the US alongside numerous other countries, particularly in the Middle East and Asia, that have launched similar funds as a way to make direct investments with government dollars.
Trump offered 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 operates at a deficit. Its creation also would be likely to require approval from Congress.
Trump had previously floated such a government investment vehicle as a presidential candidate, saying it could fund “great national endeavours” including infrastructure projects such as highways and airports, manufacturing and medical research.
In another surprise twist, Trump suggested the wealth fund could buy TikTok, whose fate has been up in the air since a law requiring its Chinese owner ByteDance to either sell it on national security grounds or face a ban took effect on January 19.