If created, the sovereign wealth fund could place the US alongside numerous other countries, particularly in the Middle East and Asia, that have launched similar funds as a way to make direct investments with government dollars.

The text of the executive order was sparse on details, and simply directed the Treasury and Commerce Departments to submit a plan for such a fund within 90 days, including recommendations on “funding mechanisms, investment strategies, fund structure, and a governance model”.

Typically such funds rely on a country’s budget surplus to make investments, but the US operates at a deficit. Its creation also would likely require approval from Congress.

“We’re going to create a lot of wealth for the fund,” Trump told reporters. “And I think it’s about time that this country had a sovereign wealth fund.”

Trump had previously floated such a government investment vehicle as a presidential candidate, saying it could fund “great national endeavours” including infrastructure projects such as highways and airports, manufacturing and medical research.