President Donald Trump signed an executive order on Monday to establish a government-run sovereign wealth fund for economic development and potential strategic investments, including a stake in TikTok. Treasury Secretary Scott Bessent said the fund would be operational within twelve months, leveraging U.S. assets to benefit the American people. The fund could support infrastructure projects, extend U.S. influence in regions like Panama and Greenland, and reduce reliance on Treasury debt. Sovereign wealth funds invest in stocks, bonds, real estate, infrastructure, and private equity in global financial markets. Critics warn that insufficient transparency can lead to conflicts and corruption without strict governance rules.
