Trump orders the creation of a fund of sovereign wealth, he says he could buy Tikict | Business and economy news
The President of the United States Donald Trump has signed an executive order to create a sovereign wealth fund in the next year, saying that he could potentially buy a short video application Tiktok.
Trump offered few details on Monday, and it was not clear how such a wealth fund would function. Typically, such agents rely on the budget of the country to invest in investment, but the US government has a deficit. Its creation would also probably require the approval of the congress.
“We will create a lot of wealth for the fund,” Trump told reporters. “And I think it’s time that this country had a sovereign fund for wealth.”
Trump has previously floated with such a government investment vehicle as a presidential candidate, saying he could finance “big national efforts” such as infrastructure projects such as highway and airports, production and medical research.
Administration officials did not say that the Fund would manage or finance the Fund, but Trump said earlier that it could be funded by “tariffs and other intelligent things.”
Scott Bessent Treasury Secretary told reporters that the Fund would be founded in the next 12 months.
“We will stiffen the assets of the American balance sheet for the American people,” Bessent said. “There will be a combination of liquid assets, the property we have in this country as we work to pull them out for the American people.”
The administration of former President Joe Biden also considered establishing such a fund before Trump’s elections in November, according to the New York Times and the Financial Times.
The ‘economy’ does not add up ‘
Wall Street investors said the news came as a surprise.
“Creating a sovereign wealth fund suggests that the country has savings that will increase and can be assigned it,” said Colin Graham, head of the Multiiaseta Strategy in Robeco in London. “Economic rules of thumb do not add up.”
There are more than 90 such funds around the world that run over $ 8 trillion assets, according to the international forum of funds for sovereign wealth.
In the second surprise, Trump suggested that the wealth fund could buy a tictok, whose fate in the US was in the air, because the law demanded that its Chinese owner, Bytetan, or to sell it on national security fields or confronted with prohibition into force on January 19th.
Trump, after taking over his duty on January 20, signed an executive order that he sought to postpone for 75 days of law enforcement.
Trump said he talked to more people about it Tiktok’s purchase And probably this month would make a decision on the future of the application. The popular application has about 170 million US users.
“We’ll do something with Tictok, and maybe not,” Trump said. “If we do the right job, we will do it. Otherwise we will not … … we could put it in a sovereign fund for wealth.”
