.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness could escalate in the second half of the year, but he does certainly not think the united state is heading right into a recession.Global equities observed sharp sell-offs last week as real estate investors digested unstable financial data out of the USA which brought up worries concerning an economical slump on the planet's biggest economic condition. It likewise questioned about whether the Federal Get required to become a lot less hawkish with its own monetary plan stance. The central bank maintained fees on hold in late July at a 23-year high.When inquired about the outlook for the united state economic situation, Ermotti stated: "Not necessarily an economic downturn, but definitely a lag is possible."" The macroeconomic signs are unclear sufficient to talk about recessions, and really, it is actually probably premature. What we know is that the Fed possesses sufficient ability to intervene as well as assistance that, although it's mosting likely to take a while, whatever they carry out to become at that point transmitted right into the economic situation," the CEO told CNBC on Wednesday after the bank disclosed its own second-quarter results.UBS anticipates that the Federal Get will cut prices by at least fifty basis factors this year. Presently, investors are divided between a 50 and a 25 basis factor cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that we are most likely to find greater market volatility in the second one-half of the year, partly as a result of the U.S. vote-casting in Nov." That's one element, yet additionally, if I examine the general geopolitical image, if I look at the macroeconomic image, what our experts viewed in the last number of weeks in relations to dryness, which, in my perspective, is actually a crystal clear indicator of the frailty of some components of the unit, u00e2 $ u00a6 one must expect most definitely a greater level of volatility," he said.Another anxiety going ahead is actually financial policy and also whether reserve banks are going to have to reduce costs much more strongly to fight a downturn in the economic situation. In Switzerland, where UBS is headquartered, the central bank has actually cut costs two times this year. The International Reserve Bank and also the Banking Company of England have both announced one slice so far." Recognizing the celebrations which are actually theu00c2 unknowns imminent like the USA presidential election, our team came to be unconcerned along with a very reduced dryness, now our experts are shifting to an even more typical regime," Bruno Verstraete, creator of Lakefield Riches Management said to CNBC Wednesday." In the situation of UBS, [even more dryness is] not essentially a poor thing, since more volatility suggests even more trading profit," he incorporated.