.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness might heighten in the second half of the year, however he does not believe the U.S. is actually moving in to a recession.Global equities viewed sharp sell-offs recently as clients digested unstable economical information away from the united state which raised anxieties about a financial downturn worldwide's largest economic condition. It also questioned regarding whether the Federal Book needed to be less hawkish along with its own monetary policy position. The reserve bank maintained prices on grip in overdue July at a 23-year high.When asked them about the outlook for the U.S. economic climate, Ermotti stated: "Not necessarily an economic crisis, yet definitely a slowdown is actually achievable."" The macroeconomic red flags are unclear enough to discuss economic slumps, and also really, it's perhaps premature. What we understand is actually that the Fed possesses good enough capacity to action in and support that, although it is actually mosting likely to take time, whatever they do to become then sent into the economic climate," the chief executive officer told CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS anticipates that the Federal Reserve will definitely cut prices through at least fifty manner factors this year. Presently, investors are split in between a fifty and also a 25 basis factor cut at the Fed's upcoming appointment in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that we are very likely to observe greater market volatility in the 2nd one-half of the year, somewhat because of the USA vote-casting in November." That's one aspect, yet also, if I check out the total geopolitical picture, if I check out the macroeconomic picture, what we viewed in the last couple of weeks in regards to dryness, which, in my standpoint, is actually a crystal clear sign of the frailty of some elements of the unit, u00e2 $ u00a6 one should expect absolutely a higher level of volatility," he said.Another unpredictability going forward is financial policy as well as whether reserve banks are going to have to cut fees extra boldy to battle a slowdown in the economy. In Switzerland, where UBS is headquartered, the central bank has reduced costs two times this year. The European Reserve Bank as well as the Banking Company of England possess each revealed one slice thus far." Understanding the celebrations which are actually theu00c2 unknowns on the horizon like the united state governmental vote-casting, our experts became complacent with an extremely low dryness, currently our team are moving to an even more usual regime," Bruno Verstraete, owner of Lakefield Wide range Management informed CNBC Wednesday." In the circumstance of UBS, [more volatility is] certainly not necessarily a bad point, because additional volatility indicates more trading earnings," he incorporated.