.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness could heighten in the second fifty percent of the year, yet he does certainly not think the united state is actually heading into a recession.Global equities found sharp auctions recently as capitalists digested unstable financial data out of the U.S. which reared concerns about an economic decline worldwide's largest economic situation. It likewise questioned concerning whether the Federal Book required to be much less hawkish with its monetary policy standpoint. The central bank maintained prices on hold in overdue July at a 23-year high.When inquired about the overview for the united state economic condition, Ermotti pointed out: "Certainly not automatically a recession, however certainly a downturn is possible."" The macroeconomic red flags are actually unclear sufficient to speak about economic downturns, and in fact, it is actually probably premature. What we understand is actually that the Fed possesses sufficient capability to intervene and support that, although it is actually mosting likely to take time, whatever they carry out to become after that transferred into the economic condition," the CEO informed CNBC on Wednesday after the banking company disclosed its second-quarter results.UBS anticipates that the Federal Reserve will certainly reduce prices by at the very least fifty basis factors this year. Presently, investors are actually split in between a fifty as well as a 25 manner point cut at the Fed's upcoming meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our team are actually very likely to see much higher market volatility in the second one-half of the year, partially as a result of the united state vote-casting in November." That is actually one aspect, yet likewise, if I examine the general geopolitical image, if I take a look at the macroeconomic image, what our team viewed in the last couple of full weeks in regards to dryness, which, in my viewpoint, is actually a very clear indicator of the frailty of some factors of the unit, u00e2 $ u00a6 one ought to expect most definitely a higher level of dryness," he said.Another unpredictability going ahead is monetary policy and also whether reserve banks will certainly need to reduce fees a lot more boldy to deal with a downturn in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has cut fees twice this year. The International Reserve Bank and also the Financial Institution of England possess each revealed one cut until now." Recognizing the activities which are theu00c2 unknowns on the horizon like the united state governmental vote-casting, our experts ended up being satisfied with an incredibly reduced dryness, now our team are shifting to an even more normal regime," Bruno Verstraete, owner of Lakefield Wealth Monitoring said to CNBC Wednesday." In the circumstance of UBS, [more volatility is actually] not automatically a negative thing, since even more volatility means more investing income," he included.