.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness could possibly heighten in the 2nd half of the year, yet he performs not believe the USA is actually moving into a recession.Global equities observed sharp auctions recently as clients digested unstable financial records away from the U.S. which increased fears concerning an economic decline on the planet's biggest economy. It likewise questioned about whether the Federal Get needed to have to become less hawkish with its financial plan stance. The reserve bank always kept rates on hold in overdue July at a 23-year high.When asked them about the expectation for the USA economic situation, Ermotti claimed: "Certainly not automatically an economic downturn, however certainly a lag is feasible."" The macroeconomic indicators are not clear enough to talk about economic slumps, and also really, it's perhaps premature. What we know is that the Fed has good enough capacity to come in as well as assistance that, although it's going to take a while, whatever they do to become then sent in to the economic climate," the CEO said to CNBC on Wednesday after the bank stated its own second-quarter results.UBS anticipates that the Federal Book will reduce prices through at least 50 manner points this year. Presently, investors are split in between a 50 and also a 25 basis factor cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti said that we are actually very likely to see much higher market volatility in the 2nd half of the year, partly because of the U.S. election in Nov." That is actually one element, but additionally, if I look at the general geopolitical picture, if I take a look at the macroeconomic image, what our experts found in the last couple of full weeks in terms of volatility, which, in my viewpoint, is a crystal clear sign of the fragility of some components of the device, u00e2 $ u00a6 one should expect most definitely a greater level of dryness," he said.Another uncertainty going ahead is actually financial plan as well as whether central banks are going to need to cut fees extra strongly to battle a stagnation in the economic situation. In Switzerland, where UBS is actually headquartered, the central bank has actually cut costs two times this year. The International Reserve Bank and also the Financial Institution of England possess both declared one cut so far." Recognizing the events which are theu00c2 unknowns coming up like the united state governmental political election, our team came to be satisfied along with a quite reduced dryness, now our team are actually switching to a much more typical program," Bruno Verstraete, owner of Lakefield Wealth Monitoring said to CNBC Wednesday." In the situation of UBS, [even more volatility is] certainly not automatically a negative factor, because even more volatility means additional exchanging revenue," he incorporated.