.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness could possibly intensify in the second one-half of the year, however he does certainly not strongly believe the USA is actually heading right into a recession.Global equities viewed stinging sell-offs recently as investors digested unstable financial data away from the U.S. which increased concerns concerning a financial downturn in the world's biggest economic situation. It additionally questioned regarding whether the Federal Reserve needed to have to become a lot less hawkish along with its financial plan viewpoint. The central bank always kept costs on grip in overdue July at a 23-year high.When inquired about the outlook for the USA economic condition, Ermotti claimed: "Certainly not necessarily a financial crisis, however certainly a downturn is actually feasible."" The macroeconomic indications are unclear adequate to speak about economic slumps, and also actually, it is actually most likely early. What we understand is that the Fed possesses sufficient capability to action in and assistance that, although it is actually heading to require time, whatever they perform to be after that broadcast in to the economy," the CEO said to CNBC on Wednesday after the bank stated its second-quarter results.UBS anticipates that the Federal Get are going to reduce rates by a minimum of fifty basis points this year. Right now, traders are actually divided in between a fifty and also a 25 manner factor cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our experts are likely to view much higher market dryness in the 2nd fifty percent of the year, somewhat because of the united state political election in Nov." That's one element, yet additionally, if I consider the total geopolitical photo, if I look at the macroeconomic photo, what we observed in the final couple of weeks in terms of dryness, which, in my viewpoint, is a clear indicator of the delicacy of some factors of the unit, u00e2 $ u00a6 one need to anticipate absolutely a much higher degree of volatility," he said.Another anxiety going ahead is actually monetary plan and whether central banks are going to need to reduce fees extra strongly to cope with a lag in the economy. In Switzerland, where UBS is headquartered, the central bank has actually cut fees twice this year. The European Central Bank as well as the Banking Company of England have both declared one cut until now." Understanding the celebrations which are theu00c2 unknowns coming up like the U.S. governmental election, our team came to be obsequious along with a quite low volatility, right now we are actually changing to a more ordinary regimen," Bruno Verstraete, owner of Lakefield Riches Administration informed CNBC Wednesday." In the context of UBS, [more volatility is actually] certainly not automatically a poor thing, due to the fact that additional dryness suggests more trading earnings," he incorporated.