.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness can boost in the 2nd fifty percent of the year, yet he performs not feel the U.S. is actually moving in to a recession.Global equities saw sharp auctions last week as investors digested unstable financial data away from the U.S. which brought up anxieties concerning a financial slump on earth's largest economy. It also raised questions regarding whether the Federal Get needed to become less hawkish with its own financial plan standpoint. The reserve bank maintained rates on grip in overdue July at a 23-year high.When inquired about the outlook for the united state economy, Ermotti claimed: "Not always a downturn, but absolutely a downturn is possible."" The macroeconomic clues are unclear adequate to discuss financial crises, and in fact, it's possibly early. What we understand is actually that the Fed has enough capability to action in as well as assistance that, although it is actually visiting take a while, whatever they perform to be after that transmitted right into the economic condition," the chief executive officer informed CNBC on Wednesday after the bank mentioned its own second-quarter results.UBS expects that the Federal Reserve will reduce prices through at least 50 basis points this year. At the moment, investors are split between a fifty and also a 25 manner factor cut at the Fed's following meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that we are actually likely to find much higher market volatility in the 2nd fifty percent of the year, partially as a result of the USA political election in Nov." That is actually one element, however likewise, if I look at the overall geopolitical image, if I take a look at the macroeconomic picture, what our experts saw in the last number of full weeks in relations to volatility, which, in my viewpoint, is actually a clear sign of the fragility of some components of the unit, u00e2 $ u00a6 one need to anticipate definitely a much higher level of dryness," he said.Another anxiety moving forward is financial policy and also whether central banks are going to must cut fees a lot more aggressively to battle a slowdown in the economic condition. In Switzerland, where UBS is headquartered, the reserve bank has reduced fees twice this year. The International Central Bank and the Bank of England possess each revealed one slice until now." Knowing the celebrations which are theu00c2 unknowns at hand like the USA presidential political election, our experts ended up being contented with an extremely low volatility, currently our company are actually shifting to an even more normal regimen," Bruno Verstraete, creator of Lakefield Riches Control told CNBC Wednesday." In the circumstance of UBS, [additional volatility is actually] certainly not always a bad factor, given that more volatility indicates even more trading income," he added.