.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market dryness can intensify in the second fifty percent of the year, yet he does certainly not think the united state is actually moving in to a recession.Global equities observed stinging sell-offs recently as investors digested weak economical information away from the USA which brought up anxieties concerning an economical slump worldwide's most extensive economy. It also questioned regarding whether the Federal Book required to become less hawkish with its own financial policy position. The reserve bank maintained prices on hold in late July at a 23-year high.When inquired about the expectation for the united state economic situation, Ermotti pointed out: "Certainly not necessarily an economic slump, however absolutely a slowdown is feasible."" The macroeconomic signs are not clear enough to talk about downturns, and really, it is actually probably premature. What we understand is that the Fed possesses good enough capacity to come in as well as assistance that, although it's visiting take a while, whatever they do to be then transmitted in to the economic condition," the CEO said to CNBC on Wednesday after the banking company mentioned its second-quarter results.UBS counts on that the Federal Get will definitely reduce prices by at least 50 basis points this year. Right now, investors are actually split between a fifty as well as a 25 manner factor cut at the Fed's following appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our company are actually probably to observe greater market volatility in the 2nd one-half of the year, somewhat due to the U.S. election in Nov." That's one factor, but also, if I examine the total geopolitical picture, if I take a look at the macroeconomic photo, what we viewed in the final couple of full weeks in relations to dryness, which, in my point of view, is actually a very clear indicator of the fragility of some aspects of the device, u00e2 $ u00a6 one must expect most definitely a higher degree of volatility," he said.Another uncertainty going forward is financial policy as well as whether central banks will have to cut fees a lot more boldy to combat a downturn in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has reduced fees twice this year. The European Central Bank and the Bank of England have each announced one slice until now." Understanding the activities which are theu00c2 unknowns at hand like the united state governmental vote-casting, our experts came to be contented along with an incredibly low volatility, right now our team are actually moving to a much more normal program," Bruno Verstraete, owner of Lakefield Wide range Management informed CNBC Wednesday." In the situation of UBS, [even more volatility is actually] certainly not necessarily a negative thing, because more volatility implies more investing profit," he incorporated.