U.s. Could Take Stakes In More Companies, Trump Adviser Says

The U.S. authorities could return equity stakes successful much companies going forward, perchance done an American sovereign wealthiness fund, according to 1 of President Donald Trump's apical economical advisers.

National Economic Council Director Kevin Hassett's comments Monday came days aft the U.S. took a astir 10% liking successful Intel. The authorities secured a portion of nan semiconductor shaper pinch money intended for grants arsenic portion of nan CHIPS and Science Act, passed nether nan Biden administration.

Speaking astir nan caller Intel position, Hassett told CNBC: “It’s for illustration a down costs connected a sovereign wealthiness fund, which galore countries have.” Governments passim Europe, Asia and nan Middle East use specified costs to make investments successful companies and different financial assets.

The national authorities has taken ownership stakes successful backstage companies before, but nether bonzer circumstances, specified arsenic during nan world financial situation of 2008.

Hassett said nan Intel finance was a "very, very typical condition because of nan monolithic magnitude of CHIPS Act spending that was coming Intel's way."

He added: “So I’m judge that astatine immoderate constituent there’ll beryllium much transactions, if not successful this industry, successful different industries."

The CHIPS Act was established arsenic a measurement for nan authorities to supply financing and superior to overseas & home companies that manufactured semiconductors and related products successful nan United States.

Americans and nan American system received nan use of much than $200 cardinal successful backstage superior investments since nan enactment was signed into law, according to nan Council connected Foreign Relations. Many companies besides announced plans to create caller U.S. manufacturing and building jobs.

Hassett said antecedently nan money was "going retired and disappearing into nan ether."

He besides said "we're perfectly not successful nan business of picking winners and losers." However, nan U.S. is now Intel's largest azygous shareholder. The management has besides took a "golden share" successful U.S. Steel arsenic portion of approving its merger pinch Japan's Nippon Steel. Trump besides said he negotiated pinch Nvidia CEO Jensen Huang to return a 15% trim of nan chipmaker's gross from immoderate chips sold successful China. Trump besides has a akin woody pinch rival chipmaker AMD.

After Hassett's question and reply Trump took to Truth Social to say: "I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS. All goes to nan USA." He besides said he would "help those companies that make specified lucrative deals pinch nan United States."

It was unclear why nan president said nan U.S. did not salary thing for nan stake. The authorities purchased 433.3 cardinal Intel shares astatine $20.47 each, which equates to $8.9 billion.

Trump has besides pushed companies to alteration people connected cardinal products, specified arsenic erstwhile he pre-emptively announced that Coca-Cola would adhd cane sweetener to an American type of its namesake product.

Trump has besides threatened firms specified arsenic Amazon, Mattel, Hasbro and Walmart pinch retaliation for hiking prices arsenic a consequence of his sweeping world tariff regime.

The president's involution successful backstage manufacture has sparked wide criticism, including from Republicans. Trump's erstwhile U.N. ambassador, and a erstwhile Boeing committee personnel Nikki Haley, said connected X: "Intel will go a trial lawsuit of what not to do."

After nan CNBC interview, NBC News asked Hassett astir mounting up a sovereign wealthiness fund.

"As we get things for illustration Intel, past there's benignant of a mobility of wherever it goes and it's held by nan U.S. Treasury. And if nan U.S. Treasury has much of that stuff, that is starting to look for illustration sovereign wealthiness fund, whether an charismatic sovereign wealthiness money is established is different question," Hassett said.

"But it's not unprecedented for nan U.S. to ain equity" successful backstage companies, he added.

The U.S. took equity stakes successful backstage companies during nan world financial meltdown of 2008 and 2009.

Then, nan U.S. bought troubled assets and took equity stakes successful nan likes of JPMorgan, Wells Fargo, Citigroup, Bank of America, AIG, and different systemically important firms successful bid to stabilize nan world financial system.

Trump has expanded his powerfulness complete nan business world, fueled by his position that nan U.S. system is for illustration "a section store, and we group nan price."

"I meet pinch nan companies, and past I group a adjacent price, what I see to beryllium a adjacent price, and they tin salary it, aliases they don't person to salary it," Trump said successful an April interview.