So what isn't there to like about Wednesday's GDP figures -- in addition to a report from
that showed 192,000 new jobs, beating estimates?
Deceptively fast economic growth could prompt investors to buy riskier assets, posing problems for the Federal Reserve, which is working hard to keep rates low until the job market strengthens.
For instance, Peter Tchir, head of
TF Market Advisors
highlights a surprising surge in
(AMZN - Get Report)
stock after the online retailer
missed earnings estimates
as an indication of some Fed-fueled investor complacency. "[The] Fed seems to have created a monster that they can't control. Risk, or at least how investors and companies manage around risk, is being changed. Not necessarily for the better."
Tchir is moderately bearish on stocks because of uncertainty surrounding the Fed's continued support of asset prices such as stocks.
Meanwhile, ratings agency Moody's recently highlighted the prospect of a sharp rise in interest rates as
a top risk to the banking system
, as lenders get back on track. For the Fed, a jump in interest rates could make it more difficult to wind down a balance sheet that's grown in excess of $3 trillion since the crisis.
Even for banks, rising rates may be a
-- Written by Antoine Gara in New York
For where to invest in a recovering economy, see
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