Washington – U.S. President Donald Trump has announced plans to create America’s first national sovereign wealth fund (SWF), which could potentially monetize the $5.7 trillion in assets currently held by the U.S. government. The proposed SWF is seen as a strategic move in America’s escalating geostrategic rivalry with China, although details on the fund’s size and funding mechanisms are yet to be determined1.
Trump’s executive order directs the Departments of the Treasury and Commerce to develop a plan for the fund within 90 days, including recommendations for funding mechanisms, investment strategies, and governance models. The initiative aims to promote fiscal sustainability, economic security, and U.S. leadership on the global stage2.
The creation of the SWF has sparked discussions on its potential impact on international relations and economic competitiveness. While the specifics of the fund remain unclear, it underscores the administration’s focus on leveraging national assets for long-term growth and strategic advantage.