U.S. economy likely to grow no more than 2 percent in 2011,Robert Mundell said

The U.S. economy likely to grow no more than 2 percent in 2011, less than is needed to lower unemployment, economist Nobel laureate Robert Mundell said.

"I do not see economic growth that is better than two percent, " said economics professor at Columbia University in an interview, "Street Smarts" with Carol Massar. "You had the financial crisis that devastated the economy of trust, and there is nothing around the corner that looks set to be a strong boost to the economy."

The economy grew at an average rate of 2.9 percent annually in the five quarters from the worst recession in seven decades ending in June 2009. That pace of recovery has lowered unemployment from a peak of 10.1 percent in October 2009 to 9.8 percent last month.

Mundell, 78, said unconventional Fed monetary policy actions, known as quantitative easing, had the desired effect of strengthening the dollar.

"The policy of the Fed was working three or four times before, but was cut because the dollar has soared, and that's what really broke the back of the economy, " he said. The Fed has been "negligent " by not taking into account the influence that a rising dollar would have on the economy, he said.