The Proposal of a U.S. Sovereign Wealth Fund

An executive order from the White House proposes the establishment of a U.S. sovereign wealth fund aimed at monetizing American assets, notably including potential dealings with TikTok. President Trump and Treasury Secretary Scott Besant emphasized the importance of this fund in harnessing wealth generated in the country, noting the U.S.'s potential compared to smaller nations that have successfully managed similar funds. Critics, however, argue that the U.S. lacks the natural funding sources that typically underlie sovereign wealth funds, such as commodity revenues or extensive reserves. The absence of a substantial funding model raises concerns about the viability and fiscal responsibility of implementing such a fund in a country already grappling with significant deficits.