PHILADELPHIA (Reuters) - The latest jobs report showed that government spending cuts have so far not been as damaging as some feared, Philadelphia Fed President Charles Plosser said on Friday, adding it only entrenched his opinion that the central bank should reduce its bond buying "now."

In an interview, the long-time critic of the Fed's quantitative easing program said he was comfortable with the recent rise in market interest rates as investors increasingly predict he and fellow policy-makers will reduce the pace of accommodation sooner than later.

Yields on U.S. government bonds rose again on Friday after the Labor Department's jobs market report showed employers in the United States stepped up hiring in May, adding 175,000 jobs.

"It shows that the fears of the sequester (spending cuts) and the layoffs, while they may be there, have not been as damaging yet to overall employment as some people had feared," Plosser told Reuters.

"We would all like it to be stronger but there's no reason for us to feel bad about the numbers that came out," which he said showed the economy produced jobs at a "moderate rate."

(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)