U.S. Treasury Secretary Scott Bisent stated that the American government is not considering acquiring a stake in chip manufacturer Nvidia.
During an interview with Fox Business on Wednesday, Bisent pointed out that Nvidia does not require financial support, making any potential acquisition of shares irrelevant at this time.
However, the Secretary noted that the administration might contemplate investments in other sectors, such as shipbuilding, as part of an effort to reshape certain strategic industries.
Recently, the U.S. government announced a deal with Intel to acquire nearly a 10% stake in the company through financial support provided under the Chips and Science Act.
Bisent believes that despite the impressive performance of semiconductor companies, Taiwan’s dominance in the chip industry, particularly through TSMC, poses a security risk for the United States.
He clarified that while purchasing a stake in Nvidia is not being considered, there is potential for investment in other strategic areas, with the shipbuilding sector being a possible focus.
The Secretary criticized Boeing, indicating that the aerospace manufacturer has engaged in significant stock buybacks instead of investing in research and development, and has been constrained for years despite its stature as a major company.
On another note, Treasury Secretary Scott Bisent has urged Federal Reserve Chair Jerome Powell to perform an internal review of the bank’s policies and procedures, highlighting the circumstances surrounding Lisa Cook as a matter that warrants examination.
Bisent remarked, “I encouraged Powell to conduct a review internally before any external assessments,” stressing that the allegations of mortgage fraud against a board member are examples of issues that should be included in the review.
President Donald Trump ousted Cook from her position on the Fed’s Board of Governors after the administration accused her of involvement in mortgage fraud, while her attorney announced plans to file a lawsuit challenging the decision.
Regarding whether Cook’s dismissal aimed to facilitate Trump’s majority in Fed board nominations, Bisent affirmed that “all Fed members possess sufficient independence to make appropriate decisions.”
He added that the process of selecting a successor for Powell, whose term ends in May, is ongoing, mentioning that interviews with potential candidates will be conducted after Labor Day, with three to four names to be presented to Trump, and the final nominee expected to be announced in the fall.