And if the Fed keeps cutting rates while other central banks don’t? Rogoff said investment will flow to the highest bidder. “Capital markets are global. So, the money’s going to move to where the rate of return looks good,” he said. The European Central Bank is likely to hold rates steady going forward.

Gold held steady on Thursday, after the U.S. Federal Reserve voted to lower borrowing costs by a quarter-percentage point but signaled a pause in further interest rate cuts, while silver surged to another record high.

The Federal Reserve made no changes to its median interest-rate projections, with a quarter-point reduction still penciled in for next year, according to the Summary of Economic Projections published on Wednesday.

The Federal Reserve maintained its benchmark interest rate on Wednesday, keeping borrowing costs at their highest level in more than two decades despite a prolonged cooldown of inflation. An interest rate cut is widely expected in the coming months.

Fed Chair Jerome Powell, speaking at a press conference after the December FOMC meeting, said the central bank is holding interest rates steady until it gets more clarity on the economy.