.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti mentioned Wednesday that market dryness can heighten in the second half of the year, however he performs certainly not think the U.S. is actually heading right into a recession.Global equities observed sharp auctions recently as clients digested weak financial records away from the united state which reared concerns regarding an economical downturn on the planet's biggest economy. It likewise questioned concerning whether the Federal Get needed to become much less hawkish along with its own financial policy viewpoint. The reserve bank kept rates on hold in late July at a 23-year high.When inquired about the overview for the U.S. economic condition, Ermotti said: "Not automatically an economic crisis, yet certainly a slowdown is feasible."" The macroeconomic signs are unclear sufficient to talk about recessions, as well as actually, it is actually perhaps untimely. What we understand is that the Fed possesses enough capability to intervene as well as assistance that, although it is actually mosting likely to take time, whatever they do to be then transmitted into the economic condition," the CEO told CNBC on Wednesday after the bank reported its second-quarter results.UBS counts on that the Federal Reserve are going to reduce fees through at the very least fifty basis factors this year. Right now, investors are divided between a 50 as well as a 25 manner factor cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that our experts are most likely to find greater market volatility in the 2nd fifty percent of the year, partially due to the U.S. election in November." That is actually one element, yet likewise, if I check out the total geopolitical image, if I consider the macroeconomic photo, what our company observed in the last number of weeks in regards to volatility, which, in my viewpoint, is a very clear indicator of the fragility of some factors of the system, u00e2 $ u00a6 one should anticipate undoubtedly a higher degree of volatility," he said.Another anxiety going forward is actually monetary policy and whether reserve banks will definitely must reduce prices extra boldy to cope with a downturn in the economic climate. In Switzerland, where UBS is headquartered, the central bank has actually reduced prices two times this year. The International Central Bank and the Bank of England possess both introduced one slice up until now." Understanding the events which are actually theu00c2 unknowns imminent like the USA governmental vote-casting, we came to be satisfied with an extremely reduced dryness, right now our company are actually changing to a much more ordinary regime," Bruno Verstraete, founder of Lakefield Riches Control said to CNBC Wednesday." In the context of UBS, [additional dryness is actually] not always a negative trait, because even more volatility indicates more trading income," he added.