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Fed's Kaplan says trade is critical for U.S economy

BROWNSVILLE, Texas, May 13 (Reuters) - Dallas Federal Reserve Bank President Robert Kaplan on Monday reiterated his view that globalization and trade boost rather than hurt the U.S. economy, and said he is hopeful that the United States and China can resolve current tensions.

"Trade is very critical," Kaplan said at the University of Texas Rio Grande Valley. Tariffs on traded goods, he said, throw "sand in the gears" of companies that use those goods in their supply chains, and trade tensions create uncertainty for businesses.

Kaplan does not have a vote this year on monetary policy but takes part in the Fed's regular policy-setting meetings in Washington. (Reporting by Ann Saphir; Editing by Steve Orlofsky)