.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market dryness can magnify in the second half of the year, yet he performs not feel the U.S. is actually moving in to a recession.Global equities observed sharp sell-offs last week as clients digested weak financial information away from the USA which raised concerns regarding a financial recession on the planet's largest economic condition. It also questioned concerning whether the Federal Get needed to have to be a lot less hawkish with its own financial policy standpoint. The reserve bank always kept prices on hold in late July at a 23-year high.When asked them about the expectation for the U.S. economy, Ermotti said: "Certainly not automatically an economic slump, however undoubtedly a downturn is possible."" The macroeconomic clues are actually unclear enough to discuss recessions, and also actually, it's most likely premature. What we know is actually that the Fed has good enough capability to intervene and support that, although it is actually going to take some time, whatever they do to be after that sent in to the economic condition," the chief executive officer said to CNBC on Wednesday after the bank reported its second-quarter results.UBS expects that the Federal Get will certainly reduce fees by at the very least 50 manner points this year. At the moment, investors are actually split in between a 50 and a 25 manner factor cut at the Fed's upcoming conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that we are actually likely to view higher market dryness in the second fifty percent of the year, somewhat as a result of the united state election in November." That's one element, however likewise, if I examine the overall geopolitical picture, if I examine the macroeconomic image, what our team found in the last couple of weeks in regards to dryness, which, in my perspective, is actually a crystal clear indication of the frailty of some factors of the device, u00e2 $ u00a6 one should anticipate certainly a greater degree of volatility," he said.Another anxiety going ahead is actually financial policy and also whether central banks are going to must reduce costs more boldy to cope with a slowdown in the economic condition. In Switzerland, where UBS is headquartered, the central bank has cut prices twice this year. The International Central Bank as well as the Financial Institution of England have both announced one slice up until now." Understanding the celebrations which are theu00c2 unknowns at hand like the united state governmental vote-casting, our company became satisfied with a really low dryness, now we are actually moving to an even more typical routine," Bruno Verstraete, founder of Lakefield Riches Monitoring informed CNBC Wednesday." In the situation of UBS, [additional volatility is actually] not essentially a poor trait, because more dryness implies additional investing profit," he incorporated.