.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market volatility might increase in the second fifty percent of the year, but he performs certainly not think the USA is actually moving right into a recession.Global equities found sharp auctions last week as financiers digested unstable financial information away from the U.S. which raised anxieties regarding an economical downturn on earth's most extensive economy. It additionally raised questions about whether the Federal Reserve needed to become much less hawkish along with its own financial plan stance. The central bank always kept rates on hold in late July at a 23-year high.When asked them about the outlook for the united state economic condition, Ermotti claimed: "Not essentially a downturn, yet certainly a slowdown is actually possible."" The macroeconomic indicators are actually not clear sufficient to speak about financial crises, and really, it is actually perhaps early. What we know is actually that the Fed has good enough capability to action in and also assistance that, although it is actually mosting likely to take time, whatever they perform to be then transmitted right into the economic condition," the CEO said to CNBC on Wednesday after the bank reported its own second-quarter results.UBS expects that the Federal Book are going to reduce fees through at least 50 basis aspects this year. At the moment, traders are split in between a fifty and also a 25 basis aspect cut at the Fed's following appointment in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our company are actually likely to view greater market dryness in the second fifty percent of the year, partly due to the U.S. political election in Nov." That is actually one aspect, however additionally, if I look at the general geopolitical image, if I look at the macroeconomic picture, what our experts viewed in the last number of full weeks in relations to volatility, which, in my standpoint, is a very clear indication of the frailty of some components of the device, u00e2 $ u00a6 one ought to expect certainly a much higher level of dryness," he said.Another unpredictability going ahead is actually financial plan and also whether central banks will definitely must cut prices more strongly to deal with a lag in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has cut costs twice this year. The International Central Bank as well as the Financial Institution of England possess both declared one cut thus far." Knowing the celebrations which are actually theu00c2 unknowns imminent like the united state presidential political election, our company ended up being contented along with a quite low dryness, now our company are actually switching to a much more typical program," Bruno Verstraete, creator of Lakefield Wealth Control said to CNBC Wednesday." In the situation of UBS, [more volatility is actually] certainly not automatically a poor point, since additional volatility means additional exchanging income," he incorporated.