U.S. Considers Sovereign Wealth Fund for TikTok Acquisition

President Donald Trump signed an executive order to create a U.S. sovereign wealth fund, potentially for TikTok's acquisition. The fund's financing and operation remain unclear as it counters the U.S. budget deficit model. Administration suggests monetizing U.S. assets, but details spark economic debate.

In a surprising move on Monday, President Donald Trump signed an executive order for the establishment of a U.S. sovereign wealth fund, sparking discussions across financial sectors. The announcement included a potential bid to acquire popular short video app TikTok.

The plan, originating without specified funding strategies, leaves many questioning its feasibility due to the U.S.'s deficit spending. Traditionally, sovereign wealth funds are built upon budget surpluses, raising skepticism from economic experts.

Amidst these financial debates, Treasury Secretary Scott Bessent confirmed plans to set up the fund within the coming year. Meanwhile, administration hints towards utilizing tariffs and other strategies for funding, as anticipation builds over TikTok's uncertain future.

(With inputs from agencies.)