.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness can escalate in the 2nd one-half of the year, yet he performs certainly not think the united state is moving in to a recession.Global equities found stinging auctions recently as financiers digested weak economical data out of the USA which raised fears about an economic downturn on the planet's biggest economic situation. It additionally questioned about whether the Federal Reserve needed to become a lot less hawkish along with its monetary plan posture. The central bank maintained costs on hold in overdue July at a 23-year high.When asked them about the expectation for the USA economy, Ermotti pointed out: "Certainly not automatically an economic slump, however absolutely a slowdown is actually feasible."" The macroeconomic indicators are actually unclear adequate to refer to downturns, as well as really, it's perhaps untimely. What we know is actually that the Fed has enough ability to intervene and support that, although it is actually going to take a while, whatever they do to be then broadcast in to the economy," the CEO informed CNBC on Wednesday after the banking company stated its own second-quarter results.UBS anticipates that the Federal Get will definitely reduce costs by at the very least fifty basis points this year. Presently, investors are actually split between a 50 and also a 25 manner aspect cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our team are most likely to find much higher market dryness in the second one-half of the year, partly because of the USA vote-casting in Nov." That's one variable, but likewise, if I examine the total geopolitical image, if I take a look at the macroeconomic image, what we viewed in the final number of full weeks in relations to dryness, which, in my perspective, is actually a clear indicator of the delicacy of some factors of the system, u00e2 $ u00a6 one ought to anticipate most definitely a higher level of volatility," he said.Another anxiety moving forward is financial policy and also whether reserve banks are going to have to cut prices much more strongly to fight a lag in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has reduced costs two times this year. The European Reserve Bank as well as the Banking Company of England have each introduced one slice until now." Understanding the activities which are actually theu00c2 unknowns coming up like the united state governmental election, our team ended up being unconcerned with an extremely reduced dryness, currently we are shifting to a much more normal regimen," Bruno Verstraete, owner of Lakefield Riches Control told CNBC Wednesday." In the situation of UBS, [even more volatility is actually] certainly not essentially a negative trait, since additional volatility means more exchanging revenue," he included.