The US Senate passed a plan to avert the "fiscal cliff" at midnight Monday, which would extend current tax rates for most American households and postpone the automatic spending cuts for two months.

The bill cleared the Senate with a 89-8 vote. It came about two hours after the December 31 deadline had lapsed.

An agreement emerged at Monday night after a day of intensive negotiations as both parties made last-ditch efforts to bridge differences.

The plan still needs approval from the House of Representatives that would adjourn till Tuesday noon and a vote is expected on Tuesday at the earliest.

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