(RALEIGH) -- It is still too early to measure the entire effect of Japan's earthquake on the U-S economy. But NC State University economics professor Mike Walden said there will definitely be some effect.

"They are an enormous economy. They, of course, were the big focus of our competition about two decades ago. They've kind of been supplanted by China, but there are all kinds of economic relationships between the U.S. and Japan, not just things we buy from them but we have producers here that sell to Japan," said Walden.

One recent move of late may have a great impact on interest rates in the U.S.  Japan increased its holdings of U.S. government debt for an eighth straight month in January.  Walden said Japan may now sell off some of the U.S. debt it holds. "I don't see that happening in a massive sort of disorganized way. It think the Japanese are smart enough to know that if they dumped a mass amount of U.S. bonds that would actually hurt them in terms of the price that they could get back for those bonds.  I think that what's more likely is that Japan itself will begin borrowing more," said Walden.

Production of consumer products ranging from video games to the popular Toyota Prius has been hurt by Japan's earthquake. It is still very much a wait and see approach as to how deep the disaster will affect the broader U.S. economy.