Trump's Team Eyes DFC Transformation into Sovereign Wealth Fund
President-elect Donald Trump's transition team is keen on reshaping the U.S. International Development Finance Corp. (DFC) into a sovereign wealth fund, according to Bloomberg News.
This move aims to leverage the DFC's investment capabilities to bolster American influence globally. Specifically, plans are being discussed to utilize investments in Panama and Greenland to enhance U.S. presence in these regions.
Trump's vision for a sovereign wealth fund was first outlined in a 2024 speech where he emphasized investing in "great national endeavors," including infrastructure projects. The fund's financing mechanism would involve "tariffs and other intelligent things."
Business tycoons Elon Musk and Stephen Feinberg are key figures driving the discussions on transforming the DFC. Competition has emerged among potential candidates to lead the revamped agency, including former executives from Bridgewater Associates and a former Republican congressman.
The Trump transition team, Musk, and Cereberus Capital Management have yet to respond to Bloomberg's inquiries regarding this plan. Trump's inauguration as the 47th U.S. president is scheduled for January 20.