.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness could magnify in the second half of the year, yet he performs certainly not think the USA is actually heading right into a recession.Global equities observed stinging auctions recently as financiers digested unstable economic data out of the U.S. which reared anxieties about an economical decline on the planet's largest economic situation. It also questioned regarding whether the Federal Book needed to be much less hawkish with its own monetary policy stance. The reserve bank maintained rates on hold in overdue July at a 23-year high.When asked about the overview for the U.S. economic situation, Ermotti claimed: "Not necessarily an economic crisis, yet definitely a slowdown is actually feasible."" The macroeconomic signs are unclear adequate to discuss recessions, and also in fact, it's probably premature. What we know is actually that the Fed possesses good enough ability to step in and assistance that, although it is actually visiting take some time, whatever they perform to become at that point transferred into the economy," the chief executive officer told CNBC on Wednesday after the banking company disclosed its own second-quarter results.UBS counts on that the Federal Get will definitely reduce costs through at the very least 50 manner factors this year. At the moment, investors are actually split between a fifty and a 25 basis aspect cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that our team are very likely to find greater market volatility in the 2nd one-half of the year, partially as a result of the united state vote-casting in Nov." That's one variable, yet also, if I check out the overall geopolitical image, if I check out the macroeconomic picture, what our experts observed in the final number of full weeks in terms of volatility, which, in my perspective, is a crystal clear indicator of the delicacy of some factors of the unit, u00e2 $ u00a6 one need to count on most definitely a much higher level of dryness," he said.Another anxiety moving forward is monetary policy as well as whether central banks will certainly have to reduce rates extra boldy to cope with a slowdown in the economy. In Switzerland, where UBS is actually headquartered, the reserve bank has cut rates twice this year. The European Central Bank and also the Financial Institution of England possess each declared one cut up until now." Knowing the celebrations which are actually theu00c2 unknowns on the horizon like the USA presidential election, our company became unconcerned along with a very low volatility, right now our experts are actually shifting to a much more usual routine," Bruno Verstraete, creator of Lakefield Wide range Management informed CNBC Wednesday." In the context of UBS, [even more volatility is] not essentially a bad trait, given that additional dryness suggests even more trading revenue," he included.