President Donald Trump has signed an executive order to establish a federal sovereign wealth fund managed by the Department of Treasury and Department of Commerce. This initiative aims to supplement the nation’s existing financial practices.
Purpose of the Sovereign Wealth Fund
The sovereign wealth fund is aimed at managing the government's surplus revenues. The primary focus will be on using surplus income, particularly from natural resources, to facilitate long-term economic growth and financial stability.
Operation Without Cryptocurrencies
Importantly, the fund will not incorporate cryptocurrencies. A prior directive exploring the integration of cryptocurrencies remains under consideration. In the future, cryptocurrencies may be included if the U.S. decides to issue a stablecoin.
Implications for the U.S. Economy
One of the initial proposals for the fund includes the potential acquisition of TikTok, highlighting strategic investment interests. The fund is expected to enhance financial stability through diversification of assets, investing in areas such as global stocks, bonds, and real estate.
The federal sovereign wealth fund represents a new approach to economic management, with the implementation process and structural details expected to be closely monitored by the global community.
