.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti mentioned Wednesday that market dryness might magnify in the second half of the year, yet he carries out certainly not feel the USA is moving in to a recession.Global equities observed sharp auctions recently as financiers digested unstable financial data out of the U.S. which raised fears about a financial slump worldwide's biggest economic situation. It additionally raised questions about whether the Federal Book needed to become less hawkish with its monetary policy position. The reserve bank always kept rates on hold in overdue July at a 23-year high.When asked about the outlook for the U.S. economic situation, Ermotti pointed out: "Not always an economic downturn, yet undoubtedly a decline is actually achievable."" The macroeconomic indicators are unclear adequate to talk about economic crises, as well as really, it is actually possibly early. What we understand is that the Fed has sufficient capability to action in and assistance that, although it is actually mosting likely to take time, whatever they carry out to be at that point sent into the economic situation," the CEO said to CNBC on Wednesday after the banking company disclosed its second-quarter results.UBS expects that the Federal Get are going to cut fees by a minimum of 50 manner points this year. Currently, investors are actually split between a fifty as well as a 25 basis factor cut at the Fed's next conference in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that we are probably to see much higher market dryness in the second fifty percent of the year, somewhat because of the USA political election in November." That's one factor, however likewise, if I consider the overall geopolitical picture, if I consider the macroeconomic photo, what our team found in the last number of full weeks in regards to volatility, which, in my standpoint, is actually a very clear indicator of the frailty of some components of the unit, u00e2 $ u00a6 one must count on certainly a greater level of volatility," he said.Another uncertainty going forward is actually financial plan and also whether reserve banks will definitely must cut rates extra boldy to fight a lag in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut rates two times this year. The European Central Bank as well as the Bank of England have both introduced one cut so far." Understanding the occasions which are theu00c2 unknowns at hand like the U.S. governmental election, our company ended up being obsequious with a quite low volatility, right now our experts are actually changing to an even more usual program," Bruno Verstraete, creator of Lakefield Wealth Control informed CNBC Wednesday." In the circumstance of UBS, [more dryness is] not always a negative point, considering that even more volatility implies more trading earnings," he included.