BB&T Chairman Says Turmoil In Greece, China Won't Affect U.S. Growth; Fed Will Raise Rates This Fall

What impact will the Greece debt crisis and Chinese stock market collapse have on the U.S. economy? BB&T Corporation BBT chairman and CEO, Kelly King, was on CNBC Wednesday to answer that question. King also discussed if these events will cause the Fed to raise rates early.

2–2.5 Percent Growth Ahead For U.S.

"As you know, we obviously watch what's going on in Greece and Asia, but we are not an international bank at all – other than doing international business for our clients," King began. "So, to the extent that those activities impact the U.S. economy: It obviously affects us, but we don't think there's going to be a substantial impact on the U.S. economy from what's going on over there."

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King continued, "And notwithstanding the fact that there's a lot of discussion about it today, we think the U.S. economy is moving along at a solid 2–2.5 percent kind of pace; that'll likely continue. And so, our strategy is long term in nature, and none of this will change it at all."

Rates Still At Crisis Levels

King was asked if the recent turmoil in Greece and Asia would lead the Fed to raise rates at least by a quarter point in September. He replied, "I think the quarter point is symbolic; and the Fed has a real hard job right now, because they do have to consider all of these factors – notwithstanding the fact that they are primarily focused on inflation rates and employment rates.

"But, I think one of the things that they are beginning to realize...is that all of these current events move around a lot in the short-term, but they really have a long-term responsibility and that is to make sure they can provide the mechanism to support long-term changes. And we still have rates that are at crisis levels, and we are not in a crisis," King said.

King also expressed his belief that the Fed will raise rates in the fall of this year, although "not dramatically and they will be slow and methodical about it."

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