.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market dryness could boost in the second fifty percent of the year, but he performs not strongly believe the U.S. is moving into a recession.Global equities viewed stinging sell-offs recently as clients digested unstable economic records out of the U.S. which increased anxieties concerning an economic slump on earth's largest economic situation. It additionally questioned regarding whether the Federal Get required to be much less hawkish with its own financial plan posture. The central bank kept fees on grip in overdue July at a 23-year high.When asked them about the overview for the united state economic climate, Ermotti claimed: "Certainly not always a recession, however undoubtedly a decline is feasible."" The macroeconomic indications are not clear sufficient to discuss downturns, as well as really, it is actually possibly premature. What we know is that the Fed has good enough capability to come in as well as help that, although it is actually going to take some time, whatever they carry out to be at that point transmitted in to the economic condition," the CEO said to CNBC on Wednesday after the banking company stated its second-quarter results.UBS counts on that the Federal Get will definitely cut prices by at the very least fifty basis factors this year. Presently, traders are actually split between a 50 as well as a 25 manner point cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our company are most likely to find much higher market volatility in the 2nd one-half of the year, partially due to the USA vote-casting in November." That is actually one variable, but additionally, if I examine the general geopolitical photo, if I consider the macroeconomic image, what our company found in the final couple of weeks in regards to dryness, which, in my viewpoint, is a crystal clear sign of the delicacy of some aspects of the unit, u00e2 $ u00a6 one need to expect most definitely a greater degree of volatility," he said.Another uncertainty moving forward is actually financial plan and whether central banks will have to reduce fees much more boldy to cope with a downturn in the economy. In Switzerland, where UBS is actually headquartered, the central bank has actually cut costs two times this year. The European Reserve Bank as well as the Banking Company of England have both announced one cut until now." Recognizing the occasions which are theu00c2 unknowns imminent like the U.S. governmental political election, our company came to be unconcerned along with a very low dryness, right now our company are switching to a much more normal regime," Bruno Verstraete, creator of Lakefield Wide range Management informed CNBC Wednesday." In the context of UBS, [additional volatility is actually] certainly not essentially a negative trait, due to the fact that even more dryness means more exchanging income," he added.