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

BOSTON (Reuters) - Dallas Federal Reserve bank president Robert Kaplan on Thursday said trade with Mexico was “overwhelmingly” in U.S. interests and has allowed American companies to set up supply chains that make them more globally competitive.

“If you put sand in the gears of that relationship it is going to bite and affect businesses,” Kaplan said.