June 5, 2019 / 1:12 PM / 21 days ago

Fed's Kaplan says risks to downside have risen due to recent trade tensions: Bloomberg

FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks with an attendee at an annual energy conference at the Dallas Fed headquarters in Dallas, Texas, U.S. September 7, 2018. REUTERS/Ann Saphir/File Photo

(Reuters) - Dallas Federal Reserve President Robert Kaplan told Bloomberg on Wednesday that risks to a downside in the U.S. economy have risen due to recent trade tensions.

When asked about the central bank’s next move, he said it was too soon to make any judgment on a rate cut call and that he would prefer to be patient to let events unfold.

Kaplan said he is “still hopeful” that there “won’t be a follow through” on the recent threat of tariffs against Mexico, adding it was in the interest of the United States to have a strong relation with Mexico.

However, he acknowledged that the threat of tariffs against Mexico is having a “chilling” effect on businesses.

Reporting by Kanishka Singh in Bengaluru

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