Foreign authorities manage the dollar, impacting U.S. economy and trade.
The United States has let other countries manage the value of the dollar for a while now. This means that when the dollar goes down, other countries buy more of it to stop it from dropping too much. This makes it harder for the U.S. to use low interest rates to help certain industries. The U.S. has tried to get countries with a lot of money saved up to spend it, but it hasn't worked. There are three options to consider: tax foreign investors, sell dollars against other currencies, or buy foreign money when the dollar goes up a lot. The last option could help boost U.S. businesses, but it's tricky to get right.