US Economy: U.S. should avoid spending cuts, tax hikes, IMF says

An international lending organization says U.S. lawmakers must work quickly to avoid sharp tax increases and spending cuts that could throw the economy into recession next year.

The International Monetary Fund also says in an annual report on the U.S. economy that Europe's debt crisis could slow U.S. growth.

But if Congress doesn't do something to prevent the tax increases and spending cuts early next year, the impact could shave four percentage points off U.S. growth and result in a recession, the IMF says.

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