.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness might magnify in the 2nd fifty percent of the year, however he does certainly not believe the USA is actually heading right into a recession.Global equities found sharp auctions last week as capitalists digested unstable economical data away from the united state which brought up worries concerning an economic recession around the world's largest economy. It likewise raised questions about whether the Federal Get needed to be a lot less hawkish along with its financial policy viewpoint. The reserve bank kept prices on hold in overdue July at a 23-year high.When inquired about the expectation for the U.S. economic climate, Ermotti said: "Not always an economic slump, however absolutely a decline is possible."" The macroeconomic signs are actually unclear sufficient to refer to economic slumps, and really, it is actually most likely untimely. What we know is that the Fed has good enough capability to action in and help that, although it's going to require time, whatever they carry out to become after that transmitted in to the economic climate," the chief executive officer told CNBC on Wednesday after the bank mentioned its second-quarter results.UBS counts on that the Federal Get will certainly cut rates through at least fifty manner factors this year. At the moment, investors are actually divided in between a 50 and a 25 manner point cut at the Fed's upcoming conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our experts are probably to view much higher market volatility in the 2nd half of the year, somewhat because of the united state vote-casting in Nov." That's one factor, yet additionally, if I check out the general geopolitical image, if I examine the macroeconomic photo, what our company observed in the last number of full weeks in regards to volatility, which, in my standpoint, is actually a very clear sign of the fragility of some aspects of the body, u00e2 $ u00a6 one ought to expect undoubtedly a higher degree of dryness," he said.Another anxiety moving forward is actually monetary plan and also whether reserve banks will definitely must cut costs a lot more aggressively to cope with a slowdown in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has reduced costs two times this year. The European Reserve Bank as well as the Bank of England possess both announced one slice up until now." Recognizing the activities which are actually theu00c2 unknowns imminent like the U.S. presidential political election, our company came to be satisfied with a really low volatility, currently our company are shifting to a much more normal regimen," Bruno Verstraete, owner of Lakefield Wide range Control said to CNBC Wednesday." In the situation of UBS, [additional dryness is] certainly not essentially a bad thing, due to the fact that additional dryness implies more investing income," he added.