.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market dryness could possibly heighten in the 2nd half of the year, but he performs not strongly believe the united state is actually moving right into a recession.Global equities saw sharp auctions recently as financiers digested weak economical information out of the U.S. which brought up worries about an economical downturn on the planet's largest economic situation. It also questioned concerning whether the Federal Book needed to have to become much less hawkish along with its monetary plan standpoint. The central bank kept costs on grip in late July at a 23-year high.When inquired about the expectation for the U.S. economic situation, Ermotti stated: "Not essentially an economic downturn, but undoubtedly a slowdown is achievable."" The macroeconomic red flags are actually not clear sufficient to discuss financial crises, as well as really, it's possibly premature. What we know is actually that the Fed possesses enough ability to step in and also support that, although it's mosting likely to take some time, whatever they do to become at that point broadcast into the economic situation," the chief executive officer informed CNBC on Wednesday after the financial institution disclosed its own second-quarter results.UBS expects that the Federal Get are going to cut rates through at the very least 50 manner points this year. Presently, investors are actually split in between a 50 and also a 25 basis aspect cut at the Fed's following meeting in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our team are actually probably to view higher market volatility in the second fifty percent of the year, somewhat as a result of the united state political election in November." That's one aspect, however also, if I look at the general geopolitical photo, if I examine the macroeconomic image, what our team observed in the last couple of weeks in regards to volatility, which, in my perspective, is a very clear indication of the fragility of some elements of the body, u00e2 $ u00a6 one ought to count on certainly a greater level of volatility," he said.Another anxiety going ahead is monetary plan and also whether central banks will need to cut prices more aggressively to combat a decline in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut rates two times this year. The European Reserve Bank as well as the Banking Company of England possess both announced one slice up until now." Recognizing the occasions which are theu00c2 unknowns coming up like the united state presidential political election, our company became complacent along with an incredibly reduced dryness, now our company are actually shifting to a much more ordinary regime," Bruno Verstraete, founder of Lakefield Wealth Management said to CNBC Wednesday." In the situation of UBS, [more dryness is actually] certainly not essentially a negative point, due to the fact that more volatility indicates more trading income," he incorporated.