.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market volatility might boost in the second one-half of the year, however he carries out certainly not believe the USA is actually heading into a recession.Global equities observed sharp sell-offs recently as entrepreneurs digested weak economical records out of the U.S. which increased fears concerning an economical recession around the world's largest economic condition. It additionally raised questions regarding whether the Federal Book needed to have to become less hawkish with its monetary policy posture. The central bank always kept prices on grip in late July at a 23-year high.When inquired about the outlook for the U.S. economy, Ermotti claimed: "Not always an economic slump, yet undoubtedly a decline is actually feasible."" The macroeconomic signs are actually unclear adequate to speak about economic downturns, as well as in fact, it's probably early. What we know is actually that the Fed has sufficient capability to intervene as well as support that, although it's mosting likely to require time, whatever they do to become after that transmitted in to the economic condition," the CEO said to CNBC on Wednesday after the banking company disclosed its own second-quarter results.UBS anticipates that the Federal Get will reduce rates through at the very least fifty manner aspects this year. Presently, traders are divided in between a fifty and a 25 manner point cut at the Fed's next conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our team are likely to see higher market dryness in the second half of the year, partially because of the U.S. political election in Nov." That's one element, but also, if I look at the overall geopolitical photo, if I check out the macroeconomic picture, what our team observed in the last number of weeks in relations to dryness, which, in my viewpoint, is a clear indication of the frailty of some aspects of the device, u00e2 $ u00a6 one must anticipate absolutely a much higher degree of dryness," he said.Another unpredictability going ahead is financial plan and whether central banks will certainly need to reduce rates more strongly to combat a decline in the economy. In Switzerland, where UBS is actually headquartered, the reserve bank has cut rates two times this year. The International Reserve Bank and also the Bank of England possess both revealed one cut up until now." Recognizing the celebrations which are actually theu00c2 unknowns imminent like the united state presidential election, we came to be complacent with a really low dryness, now our experts are switching to a more usual program," Bruno Verstraete, creator of Lakefield Wide range Management informed CNBC Wednesday." In the situation of UBS, [more dryness is] not essentially a poor trait, since more volatility implies more trading revenue," he added.