Donald Trump is exploiting the dollar's reserve currency role, and this is positive for him in the short term

The world (currently primarily Europe, which has replaced China as regards bonds) is a buyer of financial assets in the United States, which is to a large extent due to the dollar’s international reserve currency role (and also the confidence in the solidity of the US economy as regards equities). The Trump administration is clearly exploiting the dollar's reserve currency role : thanks to this role, the massive US fiscal and external deficits can be financed at very low interest rates. This enables the United States to maintain highly expansionary economic policies that are prolonging the growth period at a time when growth is close to potential growth since the country is at full employment. The risk in the long term is that the simultaneous accumulation of public and external debt may end up causing the dollar to lose its reserve currency status.