.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti said Wednesday that market dryness could possibly boost in the second half of the year, yet he performs not strongly believe the united state is heading in to a recession.Global equities saw sharp sell-offs recently as entrepreneurs digested weak economic records away from the U.S. which increased worries concerning an economic recession in the world's largest economic climate. It likewise raised questions regarding whether the Federal Get required to be less hawkish along with its own financial plan position. The reserve bank always kept fees on grip in late July at a 23-year high.When asked about the overview for the U.S. economic climate, Ermotti said: "Not essentially an economic slump, however definitely a stagnation is possible."" The macroeconomic clues are not clear adequate to discuss economic crises, and actually, it is actually possibly early. What we understand is that the Fed has good enough ability to come in as well as assistance that, although it is actually heading to take a while, whatever they perform to become at that point transmitted into the economic climate," the chief executive officer said to CNBC on Wednesday after the bank stated its second-quarter results.UBS expects that the Federal Book will certainly reduce costs by at the very least 50 manner factors this year. Right now, traders are actually split between a fifty as well as a 25 basis factor cut at the Fed's upcoming appointment in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our team are probably to find higher market volatility in the second fifty percent of the year, partially because of the USA vote-casting in November." That's one variable, yet likewise, if I take a look at the general geopolitical image, if I look at the macroeconomic photo, what we found in the last couple of weeks in relations to volatility, which, in my viewpoint, is a clear indicator of the delicacy of some components of the body, u00e2 $ u00a6 one should expect most definitely a greater degree of dryness," he said.Another uncertainty going ahead is actually monetary plan and whether reserve banks will certainly need to cut prices even more boldy to battle a decline in the economic climate. In Switzerland, where UBS is headquartered, the central bank has actually cut fees two times this year. The International Central Bank and also the Bank of England have both revealed one cut up until now." Understanding the events which are theu00c2 unknowns at hand like the USA presidential vote-casting, our experts became unconcerned along with a really reduced dryness, currently our experts are actually moving to a much more ordinary regimen," Bruno Verstraete, owner of Lakefield Wealth Control informed CNBC Wednesday." In the context of UBS, [additional volatility is] not necessarily a poor thing, due to the fact that even more dryness indicates additional exchanging income," he incorporated.