.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness can heighten in the 2nd fifty percent of the year, however he performs not think the united state is actually moving in to a recession.Global equities viewed sharp sell-offs recently as investors digested weak financial data out of the united state which brought up anxieties concerning an economical decline around the world's most extensive economic condition. It additionally raised questions concerning whether the Federal Book needed to be less hawkish with its own monetary policy posture. The reserve bank kept prices on hold in overdue July at a 23-year high.When inquired about the expectation for the united state economic climate, Ermotti stated: "Certainly not automatically an economic downturn, yet most definitely a lag is feasible."" The macroeconomic signs are not clear enough to refer to economic crises, and also really, it is actually possibly premature. What we know is that the Fed has good enough capacity to intervene and also support that, although it is actually heading to take time, whatever they perform to be after that transmitted into the economic condition," the chief executive officer said to CNBC on Wednesday after the bank reported its own second-quarter results.UBS expects that the Federal Book will definitely cut costs by a minimum of 50 manner factors this year. Presently, traders are actually divided between a fifty and also a 25 basis factor cut at the Fed's next meeting in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our team are actually probably to view higher market volatility in the second one-half of the year, partially due to the U.S. political election in November." That is actually one aspect, but likewise, if I check out the overall geopolitical image, if I consider the macroeconomic photo, what our experts viewed in the final number of weeks in relations to dryness, which, in my viewpoint, is actually a very clear indicator of the frailty of some elements of the body, u00e2 $ u00a6 one should anticipate certainly a much higher degree of volatility," he said.Another unpredictability going forward is financial plan as well as whether reserve banks will definitely must reduce fees even more boldy to battle a stagnation in the economic condition. In Switzerland, where UBS is headquartered, the central bank has cut costs two times this year. The International Reserve Bank as well as the Financial Institution of England possess both declared one slice until now." Knowing the activities which are actually theu00c2 unknowns coming up like the U.S. presidential vote-casting, our experts ended up being unconcerned along with an extremely reduced volatility, right now we are changing to an even more ordinary regimen," Bruno Verstraete, founder of Lakefield Riches Administration informed CNBC Wednesday." In the circumstance of UBS, [more volatility is actually] certainly not always a poor factor, since additional volatility indicates additional trading revenue," he added.