By Jonathan Spicer

NEW YORK (Reuters) - The post-U.S. election market reaction is not concerning in terms of planned interest rate rises, an influential Federal Reserve official said on Friday, because the bond selloff and dollar rise appears motivated by expectations of new policies out of Washington.

"The movement in markets seems consistent with the change in expectations of how economic policy might evolve," New York Fed President William Dudley said at a press conference. "So I don't think that what we're seeing in financial markets is, to me, concerning in terms of monetary policy."

The dollar climbed on Friday to its highest level in almost 14 years and bond yields continued to soar, extending a strong trend since the surprise election of Republican Donald Trump as U.S. president heightened expectations of infrastructure spending and tax cuts that would boost the economy.

Trump also promised in the campaign to renegotiate or halt international trade agreements, which economists say would shrink the economy.

Asked about Trump's pledge to boost economic growth to about 4 percent, from less than 2 percent so far this year, Dudley, a close ally of Fed Chair Janet Yellen, said it is "possible" but would be "unusual" given the big rise in labor growth and productivity would be needed.

Dudley said free trade is generally good for economies.

The Fed takes financial conditions, along with inflation and employment and other factors, into account in deciding when to raise interest rates, a move most officials expect in December.

"We don't really know very much about what will happen in terms of the (fiscal) policy," Dudley said. "It's pretty important not to jump to a conclusion here before the policy actually gets set."

(Reporting by Jonathan Spicer; Editing by Meredith Mazzilli)