.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility could increase in the 2nd fifty percent of the year, however he carries out certainly not strongly believe the united state is actually moving into a recession.Global equities saw stinging sell-offs last week as clients digested weak financial records away from the USA which reared worries regarding a financial slump around the world's largest economic condition. It also raised questions regarding whether the Federal Reserve needed to have to be much less hawkish with its financial policy posture. The reserve bank maintained fees on hold in overdue July at a 23-year high.When asked about the overview for the U.S. economic climate, Ermotti claimed: "Certainly not always a financial crisis, but absolutely a slowdown is actually achievable."" The macroeconomic red flags are actually unclear enough to speak about economic crises, as well as really, it is actually perhaps premature. What we know is that the Fed possesses enough ability to come in and assistance that, although it is actually visiting take time, whatever they do to become then transferred into the economic situation," the CEO told CNBC on Wednesday after the financial institution reported its second-quarter results.UBS expects that the Federal Book will cut costs through at least fifty manner points this year. Currently, traders are actually divided in between a fifty as well as a 25 basis point cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our team are actually probably to see much higher market dryness in the 2nd half of the year, somewhat because of the united state vote-casting in Nov." That is actually one element, however also, if I examine the overall geopolitical image, if I consider the macroeconomic photo, what our team saw in the last couple of weeks in regards to dryness, which, in my standpoint, is a crystal clear sign of the delicacy of some aspects of the body, u00e2 $ u00a6 one need to expect undoubtedly a much higher degree of volatility," he said.Another uncertainty going forward is financial policy and also whether reserve banks will must cut rates even more strongly to battle a slowdown in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has actually cut costs two times this year. The International Central Bank as well as the Banking Company of England possess each revealed one slice until now." Knowing the events which are theu00c2 unknowns on the horizon like the USA governmental election, our experts became contented with an incredibly reduced dryness, right now our company are actually switching to a much more regular program," Bruno Verstraete, creator of Lakefield Wealth Control told CNBC Wednesday." In the context of UBS, [even more dryness is] certainly not essentially a poor thing, since even more dryness suggests more exchanging earnings," he added.