Trump says US sovereign wealth fund will ‘create a lot of wealth’ — but critics counter it’s ‘preposterous’

Trump says his US sovereign wealth fund will ‘create a lot of wealth’ — but critics counter it’s ‘preposterous’
Trump says his US sovereign wealth fund will ‘create a lot of wealth’ — but critics counter it’s ‘preposterous’

President Donald Trump has set a bold plan in motion for America’s financial future — one that mirrors the strategies of oil-rich nations and resource-heavy economies: a sovereign wealth fund.

On February 3, 2025, Trump signed an executive order directing the creation of a U.S. sovereign wealth fund. The order mandates that the Secretary of the Treasury and the Secretary of Commerce develop a plan within 90 days, detailing funding mechanisms, investment strategies, fund structure and governance models.

While the initiative is still in its early stages and specific details remain scarce, Trump is highly optimistic.

“We’re going to create a lot of wealth for the fund, and I think it’s about time this country had a sovereign wealth fund,” he told reporters.

It’s unclear how the fund would be financed, but Trump has previously suggested it could come from “tariffs and other intelligent things.”

Treasury Secretary Scott Bessent echoed Trump’s enthusiasm, stating that the administration plans to “monetize the asset side of the U.S. balance sheet for the American people.” He also noted that the fund is expected to be established within the next 12 months.

Despite Trump’s confidence, the proposal has drawn skepticism.

Economist Peter Schiff, a vocal supporter of Trump during the election season, didn’t hold back in his criticism.

“Even if the U.S. government didn’t have a massive $36.5 trillion national debt, the idea of a U.S. sovereign wealth fund is not only preposterous, it’s also unconstitutional,” he wrote in a post on X. “Plus, the last thing we need is more socialism or for the U.S. government to pick winners and losers.”

Others have also raised concerns about the economic feasibility of such a fund.

“The economic rules of thumb don’t add up,” said Colin Graham, head of multiasset strategies at Robeco in London, according to Reuters. “Creating a sovereign wealth fund suggests that a country has savings that will go up and can be allocated to this.”

The U.S. government doesn’t have much in the way of savings — it has debt. A lot of it. And with ongoing budget deficits, that debt is only expected to grow.

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