Strong, but disappointing, U.S. GDP report may be bad news for the Fed

Thursday’s strong, but disappointing, U.S. second-quarter GDP figure may be something of a warning flag for Federal Reserve officials.

There’s a risk that economic growth going forward could come in below forecasters’ estimates, leaving the U.S. mired in a slower-than-anticipated growth pattern for 2022 and possibly 2023 after a sharp, but short, recovery from the Covid-19 crisis, says Eric Vanraes, a Geneva, Switzerland-based bond portfolio manager at Eric Sturdza Investments, which managed $2.9 billion as of June.

And that’s bad news for the Federal Reserve because policy makers may have already missed the “sweet spot” for pivoting toward a more

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