.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market volatility might intensify in the second half of the year, yet he performs not think the U.S. is actually heading right into a recession.Global equities viewed sharp auctions recently as capitalists digested weak economical information out of the U.S. which reared fears regarding an economical downturn on the planet's largest economic situation. It additionally raised questions concerning whether the Federal Reserve needed to have to become less hawkish with its financial plan posture. The reserve bank always kept rates on grip in late July at a 23-year high.When asked them about the expectation for the U.S. economic condition, Ermotti stated: "Certainly not always an economic slump, but undoubtedly a decline is achievable."" The macroeconomic red flags are actually not clear enough to speak about economic slumps, as well as actually, it's perhaps early. What we understand is actually that the Fed possesses sufficient capacity to come in and also help that, although it's going to take time, whatever they do to become after that transmitted into the economic climate," the CEO informed CNBC on Wednesday after the financial institution disclosed its own second-quarter results.UBS anticipates that the Federal Book will definitely cut prices through at the very least 50 manner factors this year. Presently, traders are actually split in between a fifty and a 25 manner aspect cut at the Fed's upcoming appointment in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our team are most likely to see greater market dryness in the 2nd half of the year, somewhat due to the U.S. vote-casting in November." That is actually one variable, however additionally, if I consider the total geopolitical image, if I check out the macroeconomic picture, what our company viewed in the final couple of weeks in regards to volatility, which, in my perspective, is actually a crystal clear indicator of the frailty of some factors of the unit, u00e2 $ u00a6 one must anticipate certainly a higher level of dryness," he said.Another unpredictability going ahead is monetary policy and also whether central banks will must reduce fees even more boldy to cope with a downturn in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has reduced fees twice this year. The European Central Bank and also the Bank of England have both revealed one cut so far." Understanding the activities which are theu00c2 unknowns imminent like the USA governmental election, our experts ended up being complacent along with a really reduced dryness, right now our experts are actually shifting to an extra usual regime," Bruno Verstraete, owner of Lakefield Wide range Control told CNBC Wednesday." In the context of UBS, [more volatility is actually] certainly not essentially a poor point, considering that additional dryness implies more trading revenue," he incorporated.