Sovereign wealth funds have been around for generations, and President Donald Trump wants the federal government to join in on the trend. But there are a few problems — namely, it’s never been done in a democracy as complex as the United States.

A sovereign wealth fund often serves as a vehicle to invest a government’s budget surplus. The U.S. doesn’t have that luxury.

Joseph Bankman is the Ralph M. Parsons professor of law and business at Stanford Law School. Mark P. Gergen is the Robert and Joann Burch D.P. professor of tax law and policy at the University of California at Berkeley School of Law.

President Donald Trump has decided to create a sovereign wealth fund for the US, calling it an issue “of great strategic importance.” While unconventional, this construct might just work. But those tasked with spearheading the effort, including Treasury Secretary Scott Bessent, must keep the president at arm’s length.

Donald Trump wants the US to establish a sovereign wealth fund – and no wonder. Norway’s, one of the biggest and best known in the world, aims to “safeguard and build financial wealth for future generations”,

US President Donald Trump announced last week the creation of the first American sovereign wealth fund. He had pledged during his campaign to pursue such a policy, but this time, he formalized it with an executive order directing a plan for the fund to be developed within 90 days.

In back-to-back events last week, President Donald Trump held court with Saudi government officials and investors who do business with his family’s firms.

It is still to be determined how large America’s first national SWF will be and how it would be funded, but Mr Trump said it could monetise the US$5.7 trillion (S$7.71 trillion) in assets that the US government currently holds.

The head of Russia's sovereign wealth fund on Tuesday described U.S. President Donald Trump as a problem solver ahead of U.S.-Russian talks in Saudi Arabia, the first high-level, in-person discussions in years between the two countries.

President Donald Trump plans to take the stage in Miami Beach on Wednesday to address captains of finance and tech, as well as the event’s host: Saudi Arabia’s mammoth sovereign wealth fund.

President Donald Trump spoke Wednesday at Saudi Arabia’s annual investment conference in South Florida, a sign the oil giant is increasingly reaching the American mainstream with a signature event designed to promote the country as a global actor seeking to diversify its economy.