.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness might escalate in the 2nd half of the year, yet he performs not believe the USA is actually heading in to a recession.Global equities found sharp sell-offs last week as investors digested unstable economic information out of the USA which increased concerns about an economic decline on the planet's most extensive economic climate. It additionally raised questions concerning whether the Federal Book required to become much less hawkish along with its financial plan position. The central bank kept rates on hold in late July at a 23-year high.When asked them about the expectation for the U.S. economic situation, Ermotti claimed: "Certainly not necessarily an economic downturn, but undoubtedly a slowdown is actually feasible."" The macroeconomic clues are actually unclear enough to speak about downturns, and also actually, it's probably premature. What we know is that the Fed has good enough ability to step in as well as support that, although it is actually visiting take a while, whatever they perform to be after that transmitted right into the economic climate," the CEO informed CNBC on Wednesday after the financial institution reported its second-quarter results.UBS counts on that the Federal Get are going to cut rates by at least 50 basis points this year. Currently, investors are split between a 50 and a 25 manner point cut at the Fed's following meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our company are most likely to see much higher market volatility in the 2nd fifty percent of the year, partially as a result of the united state election in Nov." That is actually one aspect, yet additionally, if I consider the overall geopolitical picture, if I take a look at the macroeconomic image, what our experts saw in the final couple of weeks in relations to dryness, which, in my standpoint, is a clear indicator of the fragility of some components of the unit, u00e2 $ u00a6 one ought to count on definitely a greater degree of dryness," he said.Another unpredictability moving forward is actually financial plan and whether central banks will certainly have to reduce fees more aggressively to battle a downturn in the economic condition. In Switzerland, where UBS is actually headquartered, the central bank has actually reduced fees twice this year. The European Reserve Bank and the Financial Institution of England possess each announced one slice up until now." Knowing the celebrations which are theu00c2 unknowns at hand like the USA presidential election, our company came to be complacent along with a quite low volatility, currently our company are actually shifting to a much more regular program," Bruno Verstraete, creator of Lakefield Wealth Monitoring told CNBC Wednesday." In the situation of UBS, [even more volatility is] not always a bad trait, because additional dryness implies even more exchanging income," he included.