The spread between US debt and global non-US sovereigns has narrowed sharply by 80 basis points since the start of the year, as optimism about the Federal Reserve's interest rate cut outweighed concerns about fiscal deficits. But when currency fluctuations are factored in, the situation is quite different. Click to view...
The Trump administration recently proposed the creation of a US sovereign wealth fund (SWF) by 2026, and hinted that TikTok could be a potential investment target for the fund. The proposal has attracted widespread attention against a backdrop of challenging US economies and high fiscal deficits. While the idea may seem appealing, analysts warn that without clear planning and governance mechanisms, the fund could do more harm than good to markets and the economy.
Aides to President Joe Biden are studying proposals to establish a U.S. sovereign wealth fund that would enable the United States to invest in national security interests, including technology, energy, and key links in supply chains.