.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market dryness might boost in the second one-half of the year, yet he performs not think the united state is actually heading in to a recession.Global equities saw stinging auctions last week as entrepreneurs digested weak economical information away from the U.S. which brought up concerns concerning a financial slump around the world's largest economy. It likewise raised questions regarding whether the Federal Book needed to have to become a lot less hawkish along with its own financial policy viewpoint. The central bank maintained rates on grip in overdue July at a 23-year high.When asked them about the expectation for the U.S. economic situation, Ermotti stated: "Certainly not always a financial crisis, yet definitely a slowdown is actually possible."" The macroeconomic indications are unclear enough to refer to downturns, and also really, it is actually perhaps premature. What we understand is that the Fed has good enough capability to action in as well as support that, although it's visiting require time, whatever they perform to become then broadcast into the economic condition," the chief executive officer said to CNBC on Wednesday after the bank stated its own second-quarter results.UBS expects that the Federal Get are going to reduce rates by at least 50 basis points this year. Presently, investors are actually divided between a 50 and also a 25 basis point cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our team are actually probably to find greater market dryness in the 2nd fifty percent of the year, partly due to the USA vote-casting in Nov." That is actually one aspect, but additionally, if I examine the general geopolitical picture, if I look at the macroeconomic photo, what our company saw in the final couple of weeks in regards to dryness, which, in my perspective, is actually a crystal clear indication of the delicacy of some aspects of the unit, u00e2 $ u00a6 one ought to expect absolutely a greater degree of volatility," he said.Another uncertainty going forward is actually monetary policy as well as whether reserve banks will definitely have to cut costs even more aggressively to deal with a lag in the economy. In Switzerland, where UBS is actually headquartered, the reserve bank has reduced fees two times this year. The International Reserve Bank and the Banking Company of England possess each introduced one cut so far." Recognizing the activities which are actually theu00c2 unknowns on the horizon like the united state presidential election, we ended up being obsequious along with a very reduced dryness, currently we are actually switching to an even more regular routine," Bruno Verstraete, owner of Lakefield Wealth Monitoring told CNBC Wednesday." In the context of UBS, [additional volatility is actually] not automatically a negative point, given that additional dryness indicates additional exchanging revenue," he added.