[1] https://en.m.wikipedia.org/wiki/Demonyms_for_the_United_Stat...
A person from the US has been elected as the Pope, you have to come up with a title for this news piece.
You have these two options:
A) First American Pope elected ...
B) First US Pope elected ...
A is ambiguous because "American" means a country for 4% of the world and a continent for 96% of the world. Also, the pope that just died happened to be from Argentina, and also happened to be the "First American Pope" for 96% of the world, adding to the ambiguity.
B does not have any issues and is correct from whichever angle you want to approach it.
Which one do you choose?
"US Economy"
"US Job Market"
"US Military"
"US Policy"
And many other examples ...
But now that I read about it, when you use it as adjective you have to write as "U.S.".
If you want to throw the whole argument to the trash because it's missing two dots, well ... up to you.
In 50 years, when the U.S. has decided to call itself something else, then yes, this CNN breaking news headline will be ambiguous. But breaking news writes headlines for its current audience, it’s not meant to be a taxonomically accurate index.
Ask foreign speakers if you don't believe it.