Long-run problems still exist: analysts

SHANGHAI - The framework of the deal reached by the US Congress to avoid a crippling debt default provides short-term relief for global investors, but it won't have a major effect on the nation's entrenched debt problem, economists said.

After weeks of bipartisan wrangling, the US Congress finally reached a deal on Sunday, avoiding what could have turned into a global financial meltdown.

The deal would raise the US debt ceiling by as much as $2.4 trillion in two stages while promising an initial $917 billion in spending cuts over 10 years. A special congressional committee will be organized to find another $1.5 trillion in deficit cuts.