.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market dryness could possibly increase in the 2nd fifty percent of the year, yet he does certainly not think the U.S. is actually heading right into a recession.Global equities observed sharp auctions last week as capitalists digested unstable economic records away from the U.S. which reared worries about an economic decline around the world's largest economic situation. It likewise questioned concerning whether the Federal Get needed to have to be a lot less hawkish with its own financial policy viewpoint. The reserve bank maintained prices on hold in late July at a 23-year high.When inquired about the outlook for the USA economic situation, Ermotti mentioned: "Certainly not always a downturn, but certainly a slowdown is actually feasible."" The macroeconomic red flags are actually not clear sufficient to refer to recessions, as well as really, it's probably premature. What we understand is actually that the Fed has enough capability to action in and assistance that, although it is actually mosting likely to take some time, whatever they do to be at that point sent right into the economy," the chief executive officer told CNBC on Wednesday after the financial institution mentioned its second-quarter results.UBS counts on that the Federal Book will reduce rates by at least 50 manner aspects this year. Right now, traders are actually divided between a fifty and also a 25 manner aspect cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our team are actually most likely to find higher market volatility in the 2nd one-half of the year, partially because of the U.S. political election in November." That is actually one variable, yet additionally, if I take a look at the overall geopolitical photo, if I look at the macroeconomic picture, what our team found in the final couple of weeks in regards to volatility, which, in my perspective, is a crystal clear indication of the delicacy of some aspects of the body, u00e2 $ u00a6 one ought to expect absolutely a higher level of dryness," he said.Another uncertainty going ahead is financial policy as well as whether reserve banks will certainly must reduce fees much more aggressively to battle a slowdown in the economy. 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 have both announced one cut up until now." Recognizing the activities which are actually theu00c2 unknowns at hand like the united state presidential vote-casting, our team ended up being contented with a really low volatility, right now our experts are actually shifting to an even more typical program," Bruno Verstraete, founder of Lakefield Riches Administration informed CNBC Wednesday." In the circumstance of UBS, [additional dryness is actually] certainly not automatically a negative point, considering that even more volatility suggests even more trading revenue," he incorporated.