.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market volatility could possibly intensify in the 2nd half of the year, yet he carries out certainly not believe the united state is actually moving into a recession.Global equities observed sharp auctions last week as capitalists digested unstable economic records out of the united state which reared fears about an economic recession around the world's largest economic condition. It also questioned concerning whether the Federal Get needed to become a lot less hawkish with its own financial policy posture. The central bank always kept costs on grip in late July at a 23-year high.When inquired about the outlook for the USA economic climate, Ermotti pointed out: "Not automatically a downturn, but definitely a downturn is actually feasible."" The macroeconomic signs are actually not clear sufficient to discuss financial crises, and also really, it is actually perhaps premature. What we understand is actually that the Fed possesses enough capability to step in and also help that, although it's mosting likely to require time, whatever they do to be then transmitted right into the economy," the chief executive officer said to CNBC on Wednesday after the financial institution reported its second-quarter results.UBS expects that the Federal Reserve will definitely reduce prices by at least fifty manner factors this year. At the moment, traders are divided in between a 50 and also a 25 manner aspect cut at the Fed's next meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that we are very likely to find much higher market volatility in the second one-half of the year, partially as a result of the U.S. political election in November." That's one aspect, but also, if I take a look at the overall geopolitical photo, if I consider the macroeconomic image, what our experts found in the last couple of full weeks in relations to dryness, which, in my point of view, is actually a crystal clear indicator of the frailty of some elements of the body, u00e2 $ u00a6 one ought to count on definitely a higher level of dryness," he said.Another anxiety moving forward is actually monetary policy and also whether reserve banks will certainly need to reduce fees more strongly to battle a slowdown in the economic situation. In Switzerland, where UBS is actually headquartered, the central bank has cut costs two times this year. The International Central Bank and the Financial Institution of England possess both introduced one cut until now." Knowing the occasions which are actually theu00c2 unknowns at hand like the USA governmental political election, our experts came to be satisfied with a really reduced volatility, currently our experts are switching to a much more ordinary routine," Bruno Verstraete, founder of Lakefield Wealth Administration said to CNBC Wednesday." In the circumstance of UBS, [even more dryness is actually] certainly not always a bad trait, due to the fact that more dryness implies even more trading revenue," he incorporated.