.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness could magnify in the 2nd one-half of the year, but he performs certainly not strongly believe the U.S. is actually moving in to a recession.Global equities saw sharp auctions recently as clients digested unstable financial records away from the U.S. which brought up anxieties about an economic slump worldwide's most extensive economic situation. It likewise raised questions regarding whether the Federal Get needed to have to become much less hawkish along with its monetary plan viewpoint. The central bank kept costs on hold in overdue July at a 23-year high.When asked them about the outlook for the USA economy, Ermotti mentioned: "Certainly not automatically an economic slump, yet absolutely a lag is feasible."" The macroeconomic indications are not clear enough to refer to recessions, and in fact, it is actually possibly premature. What we understand is that the Fed has sufficient capability to intervene and assistance that, although it is actually mosting likely to take some time, whatever they do to become then sent into the economic situation," the chief executive officer said to CNBC on Wednesday after the bank stated its own second-quarter results.UBS anticipates that the Federal Reserve will definitely cut fees by a minimum of fifty basis factors this year. At the moment, traders are actually split in between a fifty and a 25 manner point cut at the Fed's upcoming conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our experts are probably to find much higher market volatility in the 2nd one-half of the year, partially due to the USA political election in Nov." That is actually one factor, yet likewise, if I consider the general geopolitical image, if I check out the macroeconomic image, what we saw in the last couple of full weeks in terms of dryness, which, in my perspective, is a clear sign of the fragility of some components of the unit, u00e2 $ u00a6 one must count on absolutely a greater degree of dryness," he said.Another unpredictability moving forward is actually financial plan as well as whether reserve banks are going to need to reduce costs even more aggressively to deal with a decline in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has actually cut fees twice this year. The International Central Bank and also the Bank of England possess both introduced one slice until now." Understanding the events which are actually theu00c2 unknowns at hand like the united state presidential election, we came to be unconcerned along with an incredibly low dryness, now our company are actually moving to a more ordinary regimen," Bruno Verstraete, founder of Lakefield Riches Monitoring said to CNBC Wednesday." In the circumstance of UBS, [more volatility is] not always a negative factor, due to the fact that more volatility means more trading profit," he incorporated.