.Sergio Ermotti, ceo 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 fifty percent of the year, however he does certainly not think the U.S. is heading into a recession.Global equities saw stinging auctions recently as entrepreneurs digested weak financial data out of the U.S. which reared fears concerning a financial slump around the world's most extensive economy. It also raised questions concerning whether the Federal Reserve needed to have to become much less hawkish with its monetary plan viewpoint. The central bank kept costs on grip in late July at a 23-year high.When inquired about the overview for the U.S. economic situation, Ermotti stated: "Not always an economic downturn, however most definitely a decline is feasible."" The macroeconomic signs are actually not clear adequate to talk about economic crises, and also really, it's possibly early. What we know is that the Fed possesses good enough capacity to come in as well as support that, although it's going to require time, whatever they carry out to be after that transferred right into the economy," the chief executive officer said to CNBC on Wednesday after the bank stated its own second-quarter results.UBS anticipates that the Federal Get will definitely cut rates through at least 50 basis aspects this year. Right now, traders are divided between a 50 and also a 25 basis aspect cut at the Fed's following appointment in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our company are actually likely to view greater market dryness in the second half of the year, partly because of the U.S. political election in Nov." That's one aspect, however additionally, if I consider the overall geopolitical photo, if I check out the macroeconomic image, what our experts found in the last couple of full weeks in relations to volatility, which, in my point of view, is a very clear sign of the delicacy of some components of the device, u00e2 $ u00a6 one must count on certainly a greater level of volatility," he said.Another anxiety going forward is actually financial policy and also whether reserve banks will definitely must reduce prices much more boldy to deal with a slowdown in the economic condition. In Switzerland, where UBS is actually headquartered, the central bank has actually cut fees twice this year. The European Central Bank and also the Financial Institution of England have each introduced one slice so far." Understanding the activities which are actually theu00c2 unknowns at hand like the U.S. governmental election, our experts ended up being satisfied with a very reduced dryness, right now our company are actually changing to an extra normal regimen," Bruno Verstraete, creator of Lakefield Wide range Administration informed CNBC Wednesday." In the circumstance of UBS, [additional dryness is] certainly not necessarily a negative trait, because even more volatility indicates even more investing revenue," he added.