Assuming Enough Confidence in the Economy, Expect Higher Rates in June – September

February, 2015

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Observations from Dennis Lockhart’s Naples Talk

Last Friday, Jennifer and I attended a speech by Dennis Lockhart, President of the Federal Reserve Bank of Atlanta and a member of the Federal Open Market Committee. Given his position in setting interest rate policy, every word he said was evaluated by the audience organized by First Florida Integrity Bank and the Naples Area Chamber of Commerce.

His comments were generally positive in regard to the overall economy and expectations of 3% Gross Domestic Product growth while inflation should remain moderate.  One interesting fact was that there is now 2 million more people employed now than prior to the financial crisis.

Given the strong employment report for January released Friday morning, the focus of the speech and questions was when would the Federal Reserve raise interest rates and how much? Mr. Lockhart did provide guidance of potential time of June to September for a policy change. He further emphasized the importance of economic confidence as a key factor in the decision to raise interest rates at that time.

Disclosures

Information sources used to prepare this report include Argus Research, Value Line Investment Survey, Zacks, Barron’s, Kiplinger’s, Fidelity, and Decision Economics.  Founded in 2010, Andrew Hill Investment Advisors, Inc. is registered as an investment advisor with the state of Florida and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. Andrew Hill and clients of AHIA hold positions in the investments mentioned in this report. Please contact Andrew Hill Investment Advisors, Inc. if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account.   Our current disclosure statement is set forth in Part II of Form ADV and is available for your review upon request. Tax and estate planning advice is general in nature and the firm is not engaged in the practice of law.

Andrew D.W. Hill, CFA

President & Co-founder

Andrew Hill Investment Advisors, Inc.

4081 Tamiami Trail North, Suite C-105

Naples, FL  34103

Direct Dial:  239-777-3188

Facsimile:   239-236-0484

andy@responsibleadvisors.com

Visit us on the web:   www.responsibleadvisors.com

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