.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility could possibly intensify in the 2nd fifty percent of the year, but he performs certainly not strongly believe the united state is heading right into a recession.Global equities viewed sharp sell-offs last week as entrepreneurs digested weak financial records away from the USA which raised concerns regarding an economic downturn worldwide's largest economy. It likewise raised questions concerning whether the Federal Book needed to have to become much less hawkish with its own monetary policy posture. The central bank maintained rates on hold in overdue July at a 23-year high.When inquired about the overview for the USA economy, Ermotti mentioned: "Not necessarily a downturn, but most definitely a lag is actually feasible."" The macroeconomic red flags are not clear enough to speak about financial crises, as well as really, it's most likely untimely. What we know is actually that the Fed possesses sufficient capacity to step in as well as support that, although it is actually going to take some time, whatever they carry out to be after that sent in to the economic climate," the chief executive officer informed CNBC on Wednesday after the financial institution stated its own second-quarter results.UBS expects that the Federal Reserve are going to reduce costs through at least fifty basis points this year. Presently, investors are actually split between a 50 as well as a 25 manner point cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti stated that we are actually most likely to observe greater market dryness in the 2nd half of the year, partly because of the U.S. political election in November." That's one factor, yet likewise, if I check out the total geopolitical photo, if I examine the macroeconomic photo, what we found in the final number of full weeks in relations to dryness, which, in my viewpoint, is actually a clear indication of the frailty of some aspects of the unit, u00e2 $ u00a6 one ought to count on absolutely a greater degree of dryness," he said.Another uncertainty going forward is financial plan as well as whether central banks will definitely need to reduce prices much more aggressively to fight a stagnation in the economy. In Switzerland, where UBS is actually headquartered, the central bank has actually cut fees two times this year. The European Reserve Bank as well as the Bank of England possess both announced one cut until now." Knowing the events which are theu00c2 unknowns on the horizon like the united state presidential vote-casting, our experts came to be satisfied along with a really reduced volatility, now our team are actually switching to an even more ordinary regimen," Bruno Verstraete, owner of Lakefield Riches Control told CNBC Wednesday." In the situation of UBS, [more dryness is] certainly not automatically a bad trait, due to the fact that more dryness indicates additional exchanging revenue," he added.