.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market volatility could possibly magnify in the 2nd fifty percent of the year, yet he does certainly not believe the USA is actually moving in to a recession.Global equities saw sharp auctions recently as clients digested unstable economical records away from the U.S. which raised concerns concerning an economical slump on earth's most extensive economy. It likewise questioned about whether the Federal Get required to be much less hawkish along with its financial plan stance. The central bank maintained prices on hold in overdue July at a 23-year high.When asked about the outlook for the U.S. economic climate, Ermotti mentioned: "Certainly not essentially an economic downturn, however most definitely a decline is feasible."" The macroeconomic signs are not clear enough to speak about economic slumps, as well as in fact, it is actually most likely untimely. What we understand is that the Fed possesses good enough capacity to intervene and help that, although it's going to take a while, whatever they do to be after that sent in to the economic condition," the CEO said to CNBC on Wednesday after the bank stated its second-quarter results.UBS anticipates that the Federal Reserve will reduce costs through at the very least fifty basis factors this year. Right now, traders are actually split in between a fifty as well as a 25 manner point cut at the Fed's upcoming appointment in September, according to LSEG data.Speaking to CNBC, Ermotti said that our company are most likely to find much higher market volatility in the second fifty percent of the year, somewhat because of the U.S. political election in November." That's one element, however likewise, if I consider the general geopolitical photo, if I take a look at the macroeconomic photo, what we observed in the last couple of full weeks in regards to dryness, which, in my perspective, is a crystal clear indicator of the delicacy of some factors of the device, u00e2 $ u00a6 one should anticipate undoubtedly a much higher level of dryness," he said.Another unpredictability moving forward is monetary plan as well as whether central banks are going to need to reduce prices a lot more strongly to fight a slowdown in the economic situation. In Switzerland, where UBS is headquartered, the central bank has actually cut prices two times this year. The International Reserve Bank as well as the Bank of England have both declared one slice up until now." Knowing the occasions which are theu00c2 unknowns coming up like the U.S. presidential vote-casting, our company came to be complacent along with an incredibly low volatility, now we are changing to a much more ordinary program," Bruno Verstraete, founder of Lakefield Wealth Control informed CNBC Wednesday." In the situation of UBS, [additional dryness is] certainly not automatically a poor factor, given that additional dryness suggests even more exchanging income," he added.