White House unveils plan to set up sovereign wealth fund

Dhwani Mehta FXStreet

The White House said in a statement late Monday that US President Donald Trump signed an executive order to begin developing a US government-owned investment fund, per Reuters.

Additional takeaways

The fund could be used to profit from TikTok if an American buyer is found.

TikTok has until early April to secure an approved partner or buyer.

Trump wants the US to take a 50% stake in TikTok.

TikTok is cited as an example of a potential asset for the new sovereign wealth fund.

Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick will lead efforts to establish the fund, which may need congressional approval.

Meanwhile, Trump took to his own social media platform and wrote, “GREAT INTEREST IN TIKTOK! Would be wonderful for China, and all concerned.”

Market reaction

As of writing, the US Dollar Index (DXY) is recovering at around 108.70, up 0.28% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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