Summary Box: IMF Sees US Falling Into Recession, Dampening Global Economic Growth

DRAGGING ECONOMY: The United States is heading for a recession, greatly raising the odds the global economy could fall into a slump, the International Monetary Fund concluded in a forecast Wednesday.

HOW: The IMF's World Economic Outlook cited financial problems in August 2007 that "spread quickly and unpredictably." The economy's woes were fueled by credit and housing problems.

GLOBAL DRAIN: It expects the world economy, which grew by 4.9 percent last year, to slow sharply. The fund is projecting the global economy to grow by 3.7 percent this year and 3.8 percent next year. The Treasury Department called the IMF's projections "unduly pessimistic."