.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti mentioned Wednesday that market dryness could possibly boost in the second fifty percent of the year, yet he does certainly not believe the USA is actually moving in to a recession.Global equities observed sharp auctions last week as capitalists digested unstable economical information out of the U.S. which reared fears concerning a financial decline around the world's most extensive economic condition. It additionally questioned regarding whether the Federal Reserve needed to be a lot less hawkish along with its own monetary policy viewpoint. The reserve bank maintained rates on grip in overdue July at a 23-year high.When asked them about the outlook for the USA economy, Ermotti stated: "Not essentially an economic downturn, however undoubtedly a slowdown is achievable."" The macroeconomic red flags are actually unclear adequate to refer to recessions, and also actually, it's most likely premature. What we understand is actually that the Fed has good enough ability to step in and help that, although it is actually mosting likely to take a while, whatever they do to become then transferred into the economic climate," the chief executive officer informed CNBC on Wednesday after the bank stated its own second-quarter results.UBS counts on that the Federal Get will certainly reduce fees by at the very least fifty basis factors this year. Currently, traders are split between a fifty and also a 25 manner factor cut at the Fed's next conference in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that we are actually likely to view greater market volatility in the second fifty percent of the year, somewhat due to the united state political election in November." That's one factor, however additionally, if I consider the total geopolitical image, if I take a look at the macroeconomic photo, what we observed in the final number of weeks in regards to volatility, which, in my viewpoint, is a clear indication of the delicacy of some factors of the unit, u00e2 $ u00a6 one should count on undoubtedly a higher level of dryness," he said.Another uncertainty going ahead is actually financial plan as well as whether reserve banks will certainly need to reduce rates more aggressively to fight a stagnation in the economy. In Switzerland, where UBS is headquartered, the reserve bank has actually reduced costs twice this year. The European Central Bank and also the Bank of England possess both announced one slice thus far." Understanding the activities which are theu00c2 unknowns on the horizon like the U.S. governmental vote-casting, our company ended up being obsequious along with a quite reduced dryness, now our team are switching to an extra normal regime," Bruno Verstraete, creator of Lakefield Wide range Administration said to CNBC Wednesday." In the circumstance of UBS, [more volatility is] not necessarily a negative point, because even more volatility indicates additional trading profit," he added.