On May 15, U.S. President Trump stated that he would prefer to pay off America’s debt before establishing a sovereign wealth fund. This statement reflects Trump's emphasis on the U.S. financial situation and his sense of urgency regarding the debt issue.
Trump's Debt Priority Strategy
Trump believes that the U.S. debt issue needs to be prioritized. He emphasizes that paying off the debt can enhance the fiscal sustainability of the U.S. and reduce the tax burden on American families and small businesses. This strategy aligns with his consistent business mindset of treating national finances like corporate cash flow management, prioritizing short-term balance.
Plan for a Sovereign Wealth Fund
Although Trump stated that he would pay off the debt first, he has not completely abandoned the plan to establish a sovereign wealth fund. Previously, Trump signed an executive order outlining the plan to create a U.S. sovereign wealth fund, which would serve as a tool for U.S. economic development. One of its goals is to develop infrastructure such as airports and highways. Additionally, the fund could potentially be used for projects like the acquisition of TikTok.
Support from Secretary of Commerce Ross
U.S. Secretary of Commerce Ross expressed support for the idea of a sovereign wealth fund. He believes that by establishing a sovereign wealth fund, the U.S. can enhance its economic and strategic leadership position internationally.
Market and Expert Reactions
The market's reaction to Trump's statement has been mixed. Some analysts believe that Trump's strategy may help relieve the debt pressure in the U.S., while others are concerned that this strategy may delay the establishment of a sovereign wealth fund, affecting the long-term economic development of the U.S. Additionally, some experts point out that as a debtor nation, the U.S. may face numerous challenges in establishing a sovereign wealth fund.