Most of the open economies that run current account deficits must either increase the interest rates to entice capital inflows so that the surplus in the financial/capital account finances the current account deficit, or must let their currency depreciate to improve the current account deficit. However, the US has been able to finance its huge current account deficit with a big surplus in its financial/capital account since the world financial crisis of 2008 despite maintaining an almost zero-interest rate policy (at least up until now).

Moreover, the trade-weighted USD index has been on an upward trend from 2011 to 2020.

How do you reconcile the ability of the US to finance its current account deficit with a rising USD and a zero-interest rate policy?

What are the threats to the US economy going forward analyzing the US BOP fundamentals from this perspective?