The country’s second sovereign wealth fund actually was established by President Donald Trump on Monday. He made hints at the briefing that the cash could be used to purchase TikTok with it. A sovereign wealth fund is a state-owned investment bank comprising assets like stocks, bonds, property, or another financial resources– meant for use to invest in routes, flights, manufacturing centers, health research etc. Norway’s Government Pension Fund Global, Abu Dhabi’s Investment Authority, Singapore’s Temasek Holdings and GIC are some of the cases of sovereign wealth fund.
” We’re going to have this issue up within the next 12 weeks. We’re going to sell the property part of the U. S. balance plate for the American people”, he told reporters. There will be a mix of liquid resources and resources that we will have as we work to distribute them to Americans.
Trump claimed that his election promise, the Sovereign Wealth Fund, had support great regional initiatives. Trump had stated earlier in his campaign at the Economic Club of New York that taxes and “other smart things” would be used to bring in the cash.
US’s TikTok strategy
Due to the law requiring its Chinese owner ByteDance to either buy it to an American user or be subject to a ban, TikTok was quickly shut down. The regulation became effective on January 19th. However, Trump signed an executive order requesting a 75-day pause in the country’s TikTok restrictions on January 20 as he took company. Trump claimed that he was in discussions with a number of people regarding the purchase of TikTok and that the US government would be able to decide whether or not TikTok may continue operating in February.
What are our current knowledge of the US sovereign wealth fund?
- The administration’s Scott Bessent and Howard Lutnick are in charge of laying the groundwork for the bank, which would probably need legislative acceptance.
- The bank will be opened within the next 12 times, Lutnick said. The bank may also help the government to take a profit-earning interest in vaccine companies.
- One of the choices the bank has is TikTok. ” We may put that in the sovereign wealth fund, whatever we make or we do a relationship with very rich people, a lot of choices”, Trump said.
- Former president Joe Biden had considered creating a portfolio for purchases in national security, but it was unsuccessful.
