Federal Reserve Role in U.S. Sovereign Wealth Fund forecasted by Global Policy Advisors

/EIN News/ -- NEW YORK, Feb. 16, 2025 (GLOBE NEWSWIRE) -- Global Policy Advisors LLC, recognized for devising the first governance and policy roadmap for a U.S. sovereign wealth fund, forecasts a significant role for the Federal Reserve in funding the proposed U.S. SWF. As President Trump’s Executive Order moves forward, directing the Secretaries of the Treasury and Commerce to develop a plan within 90 days, GPA’s Salar Ghahramani predicts that the Federal Reserve could be tasked with providing capital, expertise, and infrastructure for the fund, raising important questions about the central bank’s independence and the potential convergence of fiscal and monetary policy.

GPA’s latest SWF 2050™ report, "U.S. Sovereign Wealth Fund Proposal: Governance, Funding, and Federal Reserve Implications," explores the potential implications of using Federal Reserve assets as the funding source for the SWF. The report suggests that while this could provide immediate liquidity for the fund, it could also blur the line between fiscal and monetary policies, with long-term effects on market stability and the Fed's ability to operate independently.

As highlighted in recent interviews with Barron’s and Pensions & Investments, Salar Ghahramani emphasized the importance of maintaining a clear distinction between fiscal and monetary policies to avoid undermining trust in the U.S. markets. He also underscored the need for macroeconomic coordination, stating, “A nation’s economic policy should speak with one voice. Macroeconomic coordination and sound governance are essential to ensure that a sovereign wealth fund advances U.S. interests without undermining the core principles of economic stability, fiscal responsibility, and the effective functioning of monetary policy.”

About Global Policy Advisors

Global Policy Advisors® LLC is a boutique sovereign wealth fund advisory to corporations, boards of directors, and institutional investors—including hedge funds, private equity firms, pension funds, and SWFs. GPA’s ​expertise is delivering actionable insights, strategy sessions, and executive briefings on the governance, operations, and investment strategies of sovereign wealth funds.

To learn more, contact Global Policy Advisors at:
                    Email: inquiries@globalpolicyadvisors.com
                    Website: https://www.globalpolicyadvisors.com/