.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market volatility might intensify in the second one-half of the year, yet he carries out certainly not think the USA is moving right into a recession.Global equities found sharp auctions last week as capitalists digested weak financial records away from the U.S. which raised anxieties concerning a financial slump worldwide's largest economic climate. It also questioned about whether the Federal Get required to be a lot less hawkish along with its monetary policy posture. The reserve bank always kept rates on hold in overdue July at a 23-year high.When asked them about the overview for the U.S. economic condition, Ermotti pointed out: "Not always a financial crisis, yet absolutely a decline is actually possible."" The macroeconomic red flags are actually not clear enough to refer to downturns, and in fact, it's probably premature. What we know is actually that the Fed possesses sufficient ability to step in and assistance that, although it's going to take some time, whatever they carry out to become then transmitted into the economic climate," the chief executive officer told CNBC on Wednesday after the financial institution mentioned its own second-quarter results.UBS counts on that the Federal Reserve will cut rates through at the very least fifty manner points this year. At the moment, investors are divided between a fifty as well as a 25 basis point cut at the Fed's upcoming meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our experts are very likely to view greater market volatility in the 2nd one-half of the year, partially because of the united state vote-casting in Nov." That's one factor, yet also, if I take a look at the total geopolitical picture, if I examine the macroeconomic photo, what our company observed in the last number of full weeks in terms of dryness, which, in my point of view, is a clear indicator of the frailty of some elements of the device, u00e2 $ u00a6 one should expect certainly a higher level of dryness," he said.Another unpredictability going forward is actually financial policy and whether central banks will certainly must cut rates a lot more aggressively to combat a slowdown in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut rates two times this year. The International Central Bank and also the Banking Company of England possess each revealed one slice until now." Understanding the celebrations which are actually theu00c2 unknowns coming up like the united state governmental election, we became obsequious along with a very reduced dryness, now our team are actually changing to an even more ordinary program," Bruno Verstraete, creator of Lakefield Wealth Monitoring informed CNBC Wednesday." In the circumstance of UBS, [more dryness is] not necessarily a negative trait, since even more volatility means more investing profit," he included.