The U.S. Federal Reserve today cut its key fed funds rate by three-quarters of a percentage point to 2.25%, its lowest level since December 2004.

Many analysts had expected the Fed to cut the rate by a full percentage point.

The Federal Open Market Committee voted 8-2 to cut the fed funds rate. Philadelphia Fed President Charles Plosser and Dallas Fed President Richard Fisher dissented, preferring “less aggressive action.”

The Fed also lowered the discount rate it charges banks and brokers that borrow directly from the Fed by 75 bps to 2.5%, leaving the spread over the fed funds at a quarter percentage point.

In its statement, the Fed said downside risks remain and it would act in a timely manner if needed, suggesting more rate cuts are probable barring an economic recovery.

The smaller-than-expected rate cut may signal that officials are growing uneasy about the U.S. dollar’s decline against other major currencies, which has pushed up prices of commodities like oil that are priced in dollars.