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US sovereign wealth fund debate: A solution in search of a problem?

Bold vision or misplaced ambition?

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    • President Donald Trump (centre) signing an executive order directing Treasury Secretary Scott Bessent (left) and commerce secretary-designate Howard Lutnick to develop a plan for a US sovereign wealth fund within 90 days.
    • President Donald Trump (centre) signing an executive order directing Treasury Secretary Scott Bessent (left) and commerce secretary-designate Howard Lutnick to develop a plan for a US sovereign wealth fund within 90 days. PHOTO: AFP

    Udaibir Das &

    Mark Sobel

    Published Tue, Feb 11, 2025 · 05:00 AM

    ON FEB 3, President Donald Trump signed an executive order directing Treasury Secretary Scott Bessent and commerce secretary-designate Howard Lutnick to develop a plan for a US sovereign wealth fund (SWF) within 90 days. The idea is ambitious, but is it a good one? Would it even qualify as a SWF?

    Globally, well-regarded SWFs have clear mandates and specific funding mechanisms. The US proposal, as presented, lacks these elements, making it an unusual potential entrant in the SWF landscape.

    Understanding this distinction is critical in evaluating its feasibility and implications.

    Sovereign wealth fundsUS economy

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