BOSTON (Reuters) – Dallas Federal Reserve bank president Robert Kaplan said he felt it was still too soon to judge whether the impact of global trade tensions would warrant an interest rate reduction by the Federal Reserve.

While the trade dispute has boosted downside risk to business investment and ultimately U.S. growth, “it would make sense to let this situation breathe a little bit,” said Kaplan, who is not currently a voting member of the Fed’s policy-setting committee. “Some of these decisions can change. We may see a new announcement and new decisions in the next four or five weeks. I am concerned…But it is too soon to make a judgment about whether there is any action that would be appropriate.”