Trump orders the creation of a U.S. sovereign wealth fund. Here's what that means.

Washington — President Trump on Monday took the first steps toward his administration creating a government-owned investment fund, tasking the heads of the Treasury Department and Commerce Department with beginning the process to create an American sovereign wealth fund. 

Mr. Trump signed an executive order that charges Treasury Secretary Scott Bessent and Howard Lutnick, Mr. Trump's nominee to lead the Commerce Department, with beginning a process "that will hopefully result in the creation of an American sovereign wealth fund," announced Will Scharf, Mr. Trump's staff secretary. 

"We're going to create a lot of wealth for the fund, and I think it's about time this country had a sovereign wealth fund," the president told reporters in the Oval Office Monday, calling the news "very exciting."