SAN FRANCISCO (Reuters) - U.S. market reaction to Britain's vote to leave the European Union has played out "more or less" as expected, and the impact on the U.S. economy is much less than other that of other events in recent years, a top Federal Reserve official said on Tuesday.

"The economic effects, on the baseline scenario, are relatively modest, but there still is the uncertainty about how things are actually going to play out," San Francisco Federal Reserve President John Williams said in an interview Friday with Market Watch that was published Tuesday.

"I don’t think it is nearly as big a deal as the euro crisis from 2011-2012," he said.

Asked if his message is that "the economy is doing well. Full stop," Williams agreed.

Pointing to high valuations of real estate and stocks, he said the economy and financial system faces risks if the Fed keeps rates too low for too long.

Still, Williams did not repeat his view from May that the U.S. economy could handle two or three Fed interest rate rises this year.

"I don’t worry so much about whether we have one, two or three increases over a certain period of time, it is more that we’re moving gradually consistent with the economy toward removing policy accommodation," he said.

(Reporting by Ann Saphir)