.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti mentioned Wednesday that market dryness could boost in the second half of the year, but he carries out certainly not believe the USA is actually heading in to a recession.Global equities found stinging auctions recently as real estate investors digested weak economical records away from the U.S. which reared concerns about an economic downturn in the world's most extensive economic climate. It likewise questioned about whether the Federal Book needed to have to become much less hawkish along with its monetary policy stance. The central bank always kept costs on hold in late July at a 23-year high.When inquired about the overview for the U.S. economic situation, Ermotti pointed out: "Not automatically a downturn, however undoubtedly a slowdown is actually achievable."" The macroeconomic indications are not clear sufficient to refer to economic downturns, as well as actually, it's possibly untimely. What we understand is actually that the Fed has sufficient capability to come in and also assistance that, although it is actually mosting likely to take some time, whatever they do to be after that transferred into the economic climate," the CEO told CNBC on Wednesday after the banking company disclosed its own second-quarter results.UBS expects that the Federal Reserve will definitely reduce prices through at least fifty manner factors this year. Presently, traders are actually divided in between a fifty and also a 25 basis aspect cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our experts are probably to view much higher market dryness in the 2nd half of the year, partly as a result of the USA vote-casting in Nov." That is actually one aspect, but also, if I look at the total geopolitical picture, if I check out the macroeconomic picture, what our company observed in the last couple of weeks in terms of volatility, which, in my perspective, is a crystal clear indication of the fragility of some components of the system, u00e2 $ u00a6 one ought to count on undoubtedly a greater level of volatility," he said.Another anxiety going forward is actually financial plan as well as whether reserve banks are going to need to reduce costs extra aggressively to fight a downturn in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has cut prices two times this year. The European Reserve Bank and also the Financial Institution of England possess both introduced one slice until now." Knowing the events which are theu00c2 unknowns at hand like the united state governmental political election, we ended up being complacent with a very low dryness, currently our company are changing to a much more normal regimen," Bruno Verstraete, creator of Lakefield Riches Administration told CNBC Wednesday." In the circumstance of UBS, [even more volatility is actually] not always a bad point, considering that even more volatility indicates more trading revenue," he included.