TRUMP'S LATEST MOVE
Trump Wants A US Sovereign Wealth Fund. Here's What That Could Mean
The US doesn't run a surplus like most sovereign wealth funds. But Trump's order refers to trillions in existing assets.
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The Lede
On Monday, President Trump issued an executive order tasking his Treasury and Commerce departments with coming up with a plan for the US's own sovereign wealth fund. Trump's latest edict since taking over the White House two weeks ago may seem dull compared with initiatives to ramp up deportations, pull back on foreign aid, and dismantle diversity, equity, and inclusion. Nonetheless, it has prompted furious debate and questions. For starters: What is a sovereign wealth fund?
Key Details
- Most Americans are more familiar with public pension funds, which invest retirement savings for millions of city, county, and state employees. Sovereign wealth funds are similar, but they invest on behalf of an entire country.
- Sovereign wealth funds tend to have a surplus of money stemming from a natural resource, commonly oil but also diamonds.
- Critics of a US sovereign wealth fund point out that the US, far from having a surplus, runs trillion-dollar deficits — the opposite of the world's largest SWFs.
