.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market volatility could possibly intensify in the second fifty percent of the year, however he does certainly not feel the USA is heading in to a recession.Global equities observed stinging sell-offs last week as capitalists digested unstable financial information away from the united state which brought up fears about an economical downturn on earth's largest economic situation. It likewise questioned about whether the Federal Reserve required to become a lot less hawkish along with its own monetary policy posture. The reserve bank always kept rates on hold in late July at a 23-year high.When asked them about the overview for the USA economy, Ermotti pointed out: "Not necessarily an economic downturn, but absolutely a decline is actually possible."" The macroeconomic red flags are unclear adequate to discuss financial crises, as well as actually, it's probably early. What we know is actually that the Fed possesses enough ability to step in and help that, although it is actually going to take a while, whatever they do to become then transferred in to the economic condition," the chief executive officer said to CNBC on Wednesday after the bank stated its own second-quarter results.UBS expects that the Federal Reserve will definitely reduce costs by a minimum of 50 basis factors this year. Presently, traders are actually divided between a fifty and a 25 manner aspect cut at the Fed's next appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our company are most likely to find higher market dryness in the second half of the year, somewhat due to the U.S. political election in November." That's one variable, but additionally, if I look at the total geopolitical image, if I look at the macroeconomic picture, what our team saw in the last couple of full weeks in terms of dryness, which, in my standpoint, is a very clear sign of the fragility of some aspects of the system, u00e2 $ u00a6 one should expect most definitely a greater level of volatility," he said.Another anxiety moving forward is financial plan and whether central banks will certainly must reduce costs a lot more strongly to battle a stagnation in the economic condition. In Switzerland, where UBS is headquartered, the reserve bank has reduced rates two times this year. The European Central Bank and also the Bank of England possess both declared one slice until now." Knowing the events which are actually theu00c2 unknowns on the horizon like the USA governmental election, our experts ended up being unconcerned with an incredibly low volatility, currently our team are moving to an even more usual regimen," Bruno Verstraete, owner of Lakefield Riches Control informed CNBC Wednesday." In the context of UBS, [even more dryness is] not always a poor trait, due to the fact that even more volatility suggests more investing income," he incorporated.