.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market dryness can magnify in the 2nd fifty percent of the year, yet he does not believe the united state is actually heading right into a recession.Global equities observed stinging auctions recently as entrepreneurs digested unstable economic data away from the U.S. which brought up anxieties concerning a financial recession on the planet's largest economic situation. It additionally questioned regarding whether the Federal Reserve required to become less hawkish along with its own monetary plan stance. The central bank kept prices on grip in overdue July at a 23-year high.When asked them about the expectation for the USA economic climate, Ermotti mentioned: "Certainly not necessarily an economic slump, however absolutely a stagnation is actually possible."" The macroeconomic signs are unclear adequate to speak about economic downturns, and also really, it is actually possibly premature. What we know is that the Fed possesses enough capacity to come in and support that, although it is actually mosting likely to take some time, whatever they do to become at that point broadcast right into the economic climate," the chief executive officer said to CNBC on Wednesday after the bank stated its second-quarter results.UBS expects that the Federal Book are going to cut costs by at the very least fifty basis factors this year. Presently, traders are actually split in between a fifty as well as a 25 basis point cut at the Fed's next conference in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that we are actually probably to observe higher market volatility in the second one-half of the year, partially due to the U.S. vote-casting in Nov." That is actually one variable, however likewise, if I consider the total geopolitical picture, if I check out the macroeconomic image, what our team found in the last couple of weeks in terms of volatility, which, in my standpoint, is a clear indication of the frailty of some components of the system, u00e2 $ u00a6 one should anticipate absolutely a higher level of dryness," he said.Another unpredictability moving forward is monetary plan as well as whether central banks will definitely need to cut prices more boldy to battle a slowdown in the economic climate. In Switzerland, where UBS is headquartered, the reserve bank has reduced rates twice this year. The European Reserve Bank and also the Banking Company of England possess both announced one slice so far." Knowing the celebrations which are actually theu00c2 unknowns on the horizon like the united state presidential political election, our team ended up being satisfied with a very reduced dryness, right now our experts are actually switching to a much more normal routine," Bruno Verstraete, creator of Lakefield Wide range Management informed CNBC Wednesday." In the context of UBS, [even more volatility is actually] certainly not automatically a bad point, considering that additional dryness suggests even more trading profit," he added.