.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market dryness can escalate in the 2nd half of the year, however he performs not strongly believe the USA is actually moving in to a recession.Global equities observed sharp sell-offs recently as real estate investors digested unstable economical information out of the U.S. which raised concerns concerning an economical slump around the world's most extensive economic condition. It additionally raised questions regarding whether the Federal Book needed to become much less hawkish along with its monetary policy viewpoint. The reserve bank maintained rates on grip in late July at a 23-year high.When inquired about the overview for the united state economic situation, Ermotti mentioned: "Certainly not always an economic downturn, but absolutely a decline is actually feasible."" The macroeconomic indications are unclear sufficient to speak about economic downturns, and in fact, it is actually probably untimely. What we understand is actually that the Fed possesses enough capacity to action in as well as support that, although it's mosting likely to take a while, whatever they do to be at that point broadcast into the economic situation," the CEO said to CNBC on Wednesday after the banking company reported its second-quarter results.UBS anticipates that the Federal Reserve are going to cut fees by at the very least 50 manner factors this year. Presently, traders are split between a 50 and also a 25 basis aspect cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our company are most likely to view much higher market volatility in the second fifty percent of the year, partially due to the U.S. election in Nov." That is actually one variable, however likewise, if I look at the total geopolitical picture, if I look at the macroeconomic image, what our experts saw in the last number of weeks in terms of volatility, which, in my perspective, is a very clear indication of the frailty of some factors of the unit, u00e2 $ u00a6 one should count on most definitely a much higher degree of dryness," he said.Another unpredictability moving forward is actually monetary plan and also whether reserve banks will definitely must cut fees much more aggressively to deal with a slowdown in the economic condition. In Switzerland, where UBS is headquartered, the reserve bank has actually cut costs twice this year. The International Central Bank and the Bank of England possess each announced one slice until now." Recognizing the activities which are theu00c2 unknowns on the horizon like the USA presidential vote-casting, our company became contented along with a really reduced dryness, right now our team are actually moving to an even more typical regimen," Bruno Verstraete, owner of Lakefield Wide range Administration said to CNBC Wednesday." In the circumstance of UBS, [more volatility is] certainly not always a bad thing, because even more volatility implies more trading revenue," he added.