.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility might escalate in the second fifty percent of the year, but he performs certainly not believe the united state is actually heading into a recession.Global equities saw stinging sell-offs recently as entrepreneurs digested weak financial data out of the U.S. which brought up anxieties about an economic downturn on earth's biggest economic climate. It additionally questioned regarding whether the Federal Get required to be much less hawkish along with its financial policy viewpoint. The reserve bank always kept prices on grip in overdue July at a 23-year high.When asked about the overview for the united state economic situation, Ermotti pointed out: "Not automatically a downturn, yet definitely a downturn is feasible."" The macroeconomic red flags are not clear adequate to discuss recessions, as well as in fact, it is actually most likely premature. What we know is that the Fed possesses good enough capacity to step in as well as support that, although it's going to take a while, whatever they do to become after that broadcast into the economic situation," the chief executive officer informed CNBC on Wednesday after the bank disclosed its second-quarter results.UBS anticipates that the Federal Book will definitely cut costs by at least fifty manner points this year. Presently, traders are actually split in between a fifty and a 25 basis factor cut at the Fed's upcoming appointment in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that we are very likely to view greater market dryness in the 2nd half of the year, partially as a result of the USA political election in Nov." That's one aspect, but also, if I consider the total geopolitical picture, if I check out the macroeconomic image, what our team viewed in the last couple of full weeks in regards to dryness, which, in my viewpoint, is actually a very clear sign of the fragility of some elements of the device, u00e2 $ u00a6 one must anticipate certainly a much higher level of dryness," he said.Another unpredictability going forward is actually monetary policy and whether central banks are going to have to reduce fees even more boldy to cope with a lag in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has actually cut costs twice this year. The International Central Bank and the Financial Institution of England possess each announced one cut up until now." Recognizing the occasions which are actually theu00c2 unknowns on the horizon like the USA presidential political election, our experts became complacent along with a very reduced dryness, now we are switching to a more typical regimen," Bruno Verstraete, founder of Lakefield Wealth Monitoring said to CNBC Wednesday." In the context of UBS, [additional volatility is actually] not necessarily a negative point, because even more volatility means even more investing income," he incorporated.