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.

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 ordered another quarter-point cut to its federal funds rate, but not without dissents among the rate-setting committee.

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.