.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti stated Wednesday that market volatility can magnify in the 2nd fifty percent of the year, however he does not feel the USA is heading into a recession.Global equities viewed sharp auctions recently as clients digested weak economic information away from the U.S. which reared concerns regarding an economical recession in the world's biggest economic situation. It additionally raised questions concerning whether the Federal Get needed to have to become a lot less hawkish along with its own financial plan stance. The central bank always kept fees on hold in late July at a 23-year high.When asked about the expectation for the united state economy, Ermotti stated: "Not automatically an economic downturn, however undoubtedly a lag is actually possible."" The macroeconomic indications are actually not clear enough to discuss downturns, and actually, it's possibly early. What we understand is that the Fed has sufficient capacity to intervene and also help that, although it's going to take a while, whatever they carry out to become then transmitted right into the economic condition," the CEO told CNBC on Wednesday after the financial institution mentioned its own second-quarter results.UBS expects that the Federal Reserve are going to reduce fees by at the very least fifty manner factors this year. Presently, investors are divided in between a 50 and also a 25 basis aspect cut at the Fed's upcoming meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our experts are probably to see much higher market dryness in the 2nd one-half of the year, partially as a result of the united state vote-casting in Nov." That's one factor, yet likewise, if I examine the overall geopolitical picture, if I examine the macroeconomic photo, what our experts observed in the last number of full weeks in terms of dryness, which, in my viewpoint, is actually a clear sign of the delicacy of some factors of the body, u00e2 $ u00a6 one need to count on most definitely a greater degree of dryness," he said.Another anxiety going ahead is actually monetary policy as well as whether central banks will certainly must reduce costs a lot more aggressively to battle a downturn in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has cut costs twice this year. The International Reserve Bank as well as the Financial Institution of England have each introduced one slice until now." Understanding the activities which are theu00c2 unknowns coming up like the united state governmental political election, we came to be obsequious along with an extremely reduced volatility, currently our team are actually changing to an even more ordinary program," Bruno Verstraete, founder of Lakefield Riches Administration said to CNBC Wednesday." In the situation of UBS, [even more dryness is] not automatically a poor trait, since more dryness suggests additional investing revenue," he incorporated.