.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market dryness can heighten in the second half of the year, however he carries out certainly not believe the united state is actually heading in to a recession.Global equities saw sharp auctions recently as capitalists digested weak financial records away from the U.S. which brought up worries about an economic decline on the planet's largest economic condition. It likewise questioned regarding whether the Federal Book needed to have to be a lot less hawkish along with its own monetary policy stance. The reserve bank maintained rates on hold in overdue July at a 23-year high.When inquired about the expectation for the U.S. economic condition, Ermotti claimed: "Certainly not essentially an economic slump, however most definitely a downturn is actually achievable."" The macroeconomic clues are unclear enough to talk about recessions, and also really, it's probably untimely. What we know is that the Fed possesses sufficient capability to action in as well as support that, although it is actually going to take time, whatever they do to be at that point sent right into the economic climate," the CEO told CNBC on Wednesday after the financial institution stated its own second-quarter results.UBS anticipates that the Federal Book will certainly reduce rates by at the very least 50 basis points this year. Currently, traders are split in between a 50 and a 25 manner aspect cut at the Fed's next appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our company are very likely to see higher market volatility in the 2nd one-half of the year, partly because of the united state political election in November." That is actually one factor, yet also, if I examine the overall geopolitical photo, if I consider the macroeconomic photo, what our company observed in the last couple of full weeks in regards to dryness, which, in my point of view, is actually a very clear indicator of the delicacy of some elements of the unit, u00e2 $ u00a6 one need to count on certainly a greater degree of volatility," he said.Another anxiety going ahead is monetary plan and whether reserve banks will definitely need to reduce fees even more strongly to fight a decline in the economy. In Switzerland, where UBS is headquartered, the central bank has cut prices twice this year. The International Reserve Bank as well as the Banking Company of England have both introduced one cut up until now." Understanding the events which are theu00c2 unknowns imminent like the USA governmental vote-casting, our experts ended up being obsequious along with a really reduced dryness, currently we are actually changing to an extra normal routine," Bruno Verstraete, founder of Lakefield Wide range Administration informed CNBC Wednesday." In the circumstance of UBS, [more dryness is] certainly not always a negative trait, since additional volatility suggests even more investing profit," he added.