.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti said Wednesday that market dryness could magnify in the second one-half of the year, yet he does not feel the U.S. is moving into a recession.Global equities saw sharp sell-offs recently as clients digested unstable financial records out of the USA which raised worries regarding a financial recession in the world's most extensive economic climate. It additionally raised questions about whether the Federal Reserve required to become much less hawkish with its monetary plan viewpoint. The reserve bank kept rates on grip in overdue July at a 23-year high.When asked about the expectation for the united state economic situation, Ermotti mentioned: "Certainly not essentially an economic slump, yet most definitely a lag is actually achievable."" The macroeconomic signs are actually unclear adequate to talk about economic downturns, and also really, it's possibly premature. What we know is that the Fed possesses good enough capacity to come in and also help that, although it is actually visiting take a while, whatever they do to become after that broadcast right into the economic condition," the chief executive officer informed CNBC on Wednesday after the financial institution mentioned its second-quarter results.UBS expects that the Federal Get will certainly reduce fees through a minimum of 50 manner aspects this year. Right now, traders are split between a fifty as well as a 25 manner factor cut at the Fed's following meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our team are actually very likely to find greater market dryness in the second fifty percent of the year, somewhat due to the USA vote-casting in Nov." That's one element, but additionally, if I examine the total geopolitical image, if I consider the macroeconomic picture, what our team saw in the final number of full weeks in terms of volatility, which, in my perspective, is actually a crystal clear indicator of the fragility of some components of the unit, u00e2 $ u00a6 one ought to count on definitely a greater degree of volatility," he said.Another unpredictability moving forward is actually monetary policy and whether reserve banks will certainly need to cut costs even more strongly to cope with a slowdown in the economic situation. In Switzerland, where UBS is actually headquartered, the central bank has reduced costs two times this year. The European Reserve Bank as well as the Financial Institution of England have both revealed one slice thus far." Knowing the occasions which are theu00c2 unknowns imminent like the USA governmental election, our team ended up being unconcerned along with a very low dryness, right now our experts are actually shifting to a much more regular routine," Bruno Verstraete, founder of Lakefield Wide range Control informed CNBC Wednesday." In the situation of UBS, [additional volatility is actually] certainly not necessarily a negative thing, due to the fact that even more volatility suggests more trading earnings," he included.