Re: 67 Johnson 40HP looses thrust at high RPMs
Welcome to iboats!
Sounds like you have a spun prop hub. Remove the prop, using a waterproof wax pencil, mark a line across the inner and outer surfaces of the hub. Replace the prop and take her out for a spin on the lake. Remove the prop again and inspect your line. If the line has shifted, you have a spun prop hub. Most marine dealers can have the prop re-hubed and you'll be back in business.