.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market volatility can escalate in the 2nd half of the year, however he carries out not feel the USA is heading in to a recession.Global equities found sharp auctions recently as capitalists digested weak economic records out of the USA which reared worries about an economic recession around the world's biggest economic climate. It likewise questioned about whether the Federal Reserve required to become a lot less hawkish along with its financial policy viewpoint. The central bank kept prices on grip in late July at a 23-year high.When inquired about the expectation for the USA economic situation, Ermotti stated: "Certainly not necessarily a downturn, yet most definitely a slowdown is possible."" The macroeconomic indicators are not clear adequate to discuss recessions, as well as really, it is actually perhaps untimely. What we know is that the Fed has enough capacity to action in and help that, although it's heading to require time, whatever they carry out to be after that broadcast in to the economic situation," the CEO informed CNBC on Wednesday after the banking company mentioned its second-quarter results.UBS expects that the Federal Book are going to cut costs through at least fifty basis factors this year. Right now, investors are divided between a fifty and a 25 basis point cut at the Fed's upcoming appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that our team are likely to view much higher market dryness in the 2nd one-half of the year, somewhat as a result of the U.S. vote-casting in Nov." That is actually one aspect, but likewise, if I consider the overall geopolitical picture, if I examine the macroeconomic image, what our team viewed in the final number of full weeks in relations to volatility, which, in my point of view, is a crystal clear sign of the fragility of some aspects of the unit, u00e2 $ u00a6 one ought to count on undoubtedly a much higher degree of volatility," he said.Another unpredictability moving forward is actually financial policy as well as whether central banks will certainly need to reduce prices a lot more boldy to fight a decline in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has actually reduced fees twice this year. The European Reserve Bank as well as the Bank of England have each introduced one cut up until now." Knowing the activities which are theu00c2 unknowns at hand like the united state presidential vote-casting, we came to be contented with an extremely low volatility, now our company are actually changing to an extra typical regimen," Bruno Verstraete, owner of Lakefield Wealth Monitoring said to CNBC Wednesday." In the context of UBS, [even more dryness is actually] certainly not always a poor trait, since more dryness indicates more trading income," he added.