The U.S. Federal Reserve cut its key lending rate by three-quarters of a point, which isn’t as deep as some analysts had been expecting.

The federal funds rate, which is what banks charge each other for overnight loans, had been three per cent. Tuesday’s cut reduces that to 2.25 per cent. The Bank of Canada’s equivalent is 3.75 per cent.

The U.S. rate is now at its lowest point since 2004. The Fed has been employing some measures that haven’t been used since the 1930s to try to calm the markets.