Donald Trump has suggested he wants one, and the White House indicated that it has been quietly working on a proposal to set one up.The New York Times reports that former President Donald J. Trump has suggested the creation of a sovereign wealth fund, and the White House has indicated that it has been quietly working on a proposal to set one up. This fund would generate profits that could be used to pay down the national debt, according to Mr. Trump.

The Biden-Harris administration is also considering the idea of a sovereign wealth fund, but with a different focus. A White House official stated that their fund would be geared towards supply chain resilience, technological pre-eminence, and energy security.

While sovereign wealth funds are popular in other parts of the world, the United States has never pursued one due to its large budget deficits. However, the idea has gained bipartisan appeal, and both parties seem to agree that the country may be ready for such a fund.

Creating a national sovereign wealth fund would require approval from Congress, which may be hesitant to give up its power to approve federal spending. Additionally, the issue of funding such a vehicle in a country with perpetual deficits remains a challenge.

According to Mark Sobel, a former Treasury official, the establishment of a U.S. sovereign wealth fund would raise complex questions and may not be a beneficial proposition for America. He believes that none of the tough questions have been answered yet. 

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