.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti mentioned Wednesday that market dryness could magnify in the 2nd one-half of the year, but he carries out not think the USA is actually moving into a recession.Global equities saw stinging sell-offs last week as investors digested unstable economical information away from the U.S. which reared concerns concerning a financial decline in the world's largest economic situation. It likewise questioned regarding whether the Federal Book needed to have to become a lot less hawkish along with its own financial plan viewpoint. The reserve bank always kept rates on hold in overdue July at a 23-year high.When asked about the outlook for the U.S. economic condition, Ermotti stated: "Not essentially an economic crisis, however definitely a slowdown is actually feasible."" The macroeconomic indications are actually unclear adequate to discuss recessions, as well as really, it is actually possibly untimely. What we understand is actually that the Fed possesses good enough capability to step in and also support that, although it's mosting likely to take some time, whatever they perform to become after that broadcast into the economic climate," the chief executive officer said to CNBC on Wednesday after the bank mentioned its own second-quarter results.UBS counts on that the Federal Reserve will definitely reduce fees by at the very least 50 basis points this year. Currently, traders are actually split between a fifty as well as a 25 basis point cut at the Fed's following appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our company are actually most likely to see much higher market volatility in the second one-half of the year, partially as a result of the USA political election in November." That's one element, however additionally, if I take a look at the total geopolitical image, if I examine the macroeconomic image, what our experts viewed in the last number of weeks in terms of volatility, which, in my standpoint, is actually a crystal clear indicator of the delicacy of some aspects of the system, u00e2 $ u00a6 one need to expect most definitely a higher level of volatility," he said.Another anxiety going ahead is actually monetary plan as well as whether reserve banks will certainly must reduce costs extra strongly to battle a lag in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has reduced costs twice this year. The International Reserve Bank and the Bank of England have both announced one slice up until now." Understanding the events which are theu00c2 unknowns coming up like the united state presidential vote-casting, our company ended up being complacent along with a quite reduced dryness, right now we are shifting to a more typical routine," Bruno Verstraete, creator of Lakefield Riches Management informed CNBC Wednesday." In the situation of UBS, [even more dryness is] certainly not always a bad trait, since more volatility suggests even more exchanging profit," he included.