.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti said Wednesday that market dryness might magnify in the 2nd one-half of the year, yet he carries out not think the united state is actually moving right into a recession.Global equities viewed stinging sell-offs recently as real estate investors digested unstable financial data out of the united state which increased concerns regarding a financial downturn on earth's largest economic climate. It additionally raised questions about whether the Federal Book needed to become less hawkish along with its own monetary policy viewpoint. The central bank kept fees on grip in late July at a 23-year high.When asked about the expectation for the U.S. economic climate, Ermotti claimed: "Certainly not always a recession, yet absolutely a slowdown is actually possible."" The macroeconomic signs are unclear adequate to speak about recessions, and in fact, it's possibly untimely. What we understand is actually that the Fed possesses good enough capacity to come in and assistance that, although it is actually visiting take a while, whatever they carry out to become after that transmitted into the economic climate," the CEO told CNBC on Wednesday after the banking company disclosed its own second-quarter results.UBS anticipates that the Federal Get are going to reduce rates by at least 50 manner factors this year. Presently, traders are split in between a fifty as well as a 25 manner aspect cut at the Fed's next meeting in September, according to LSEG data.Speaking to CNBC, Ermotti said that our company are actually likely to view greater market volatility in the second one-half of the year, partly as a result of the USA election in Nov." That is actually one factor, however additionally, if I look at the total geopolitical image, if I look at the macroeconomic image, what our team found in the last couple of full weeks in regards to volatility, which, in my perspective, is actually a clear sign of the frailty of some components of the device, u00e2 $ u00a6 one must anticipate certainly a greater level of volatility," he said.Another uncertainty going forward is financial plan and also whether central banks will definitely must reduce costs even more boldy to cope with a slowdown in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has actually reduced prices two times this year. The International Central Bank and also the Financial Institution of England possess both introduced one cut up until now." Knowing the activities which are actually theu00c2 unknowns imminent like the U.S. presidential election, we ended up being complacent with a really low volatility, right now our experts are actually moving to a much more regular regime," Bruno Verstraete, owner of Lakefield Wide range Monitoring told CNBC Wednesday." In the situation of UBS, [additional dryness is actually] certainly not automatically a negative thing, because even more volatility suggests more exchanging earnings," he incorporated.