.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti stated Wednesday that market dryness can intensify in the second half of the year, however he performs certainly not feel the U.S. is actually moving into a recession.Global equities viewed sharp auctions recently as entrepreneurs digested unstable economic information away from the USA which brought up fears regarding an economical downturn around the world's largest economy. It additionally raised questions about whether the Federal Book required to become less hawkish along with its monetary plan stance. The central bank always kept prices on grip in late July at a 23-year high.When asked them about the outlook for the U.S. economic situation, Ermotti pointed out: "Not automatically a downturn, however absolutely a decline is feasible."" The macroeconomic indicators are actually unclear adequate to discuss economic crises, as well as in fact, it's perhaps early. What we know is that the Fed possesses enough capability to action in as well as support that, although it is actually going to take a while, whatever they do to become then sent right into the economy," the CEO informed CNBC on Wednesday after the banking company disclosed its second-quarter results.UBS counts on that the Federal Get are going to cut rates by at the very least fifty basis points this year. At the moment, traders are actually split between a 50 and also a 25 manner aspect cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our team are actually most likely to observe greater market volatility in the second fifty percent of the year, partly due to the USA political election in Nov." That's one factor, yet also, if I take a look at the general geopolitical image, if I check out the macroeconomic image, what we viewed in the last couple of full weeks in terms of volatility, which, in my standpoint, is a very clear indication of the frailty of some elements of the system, u00e2 $ u00a6 one ought to expect undoubtedly a higher level of volatility," he said.Another uncertainty moving forward is actually financial policy as well as whether reserve banks will definitely need to reduce fees extra aggressively to combat a downturn in the economic condition. In Switzerland, where UBS is headquartered, the central bank has reduced costs two times this year. The International Central Bank as well as the Bank of England possess each revealed one cut so far." Knowing the events which are actually theu00c2 unknowns imminent like the U.S. presidential election, our company came to be contented with a very low dryness, currently we are actually changing to a more usual routine," Bruno Verstraete, owner of Lakefield Wealth Administration informed CNBC Wednesday." In the circumstance of UBS, [more dryness is actually] certainly not always a bad trait, due to the fact that even more volatility suggests even more exchanging income," he incorporated.