.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti mentioned Wednesday that market volatility could possibly magnify in the second half of the year, however he performs not strongly believe the united state is actually moving in to a recession.Global equities found stinging sell-offs last week as investors digested weak economical records out of the USA which reared concerns concerning an economical recession around the world's most extensive economic situation. It also raised questions concerning whether the Federal Reserve needed to have to become much less hawkish with its own monetary plan standpoint. The central bank always kept fees on grip in overdue July at a 23-year high.When inquired about the outlook for the united state economic condition, Ermotti claimed: "Not essentially a financial crisis, however definitely a downturn is feasible."" The macroeconomic clues are unclear sufficient to talk about economic downturns, and also actually, it is actually perhaps early. What we know is actually that the Fed has sufficient capability to intervene and also assistance that, although it is actually heading to require time, whatever they do to be after that transferred in to the economic condition," the CEO said to CNBC on Wednesday after the financial institution disclosed its own second-quarter results.UBS expects that the Federal Book will certainly reduce prices by at least fifty basis aspects this year. At the moment, investors are split in between a fifty and also a 25 manner aspect cut at the Fed's following meeting in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our experts are probably to view higher market dryness in the 2nd fifty percent of the year, somewhat because of the U.S. election in November." That is actually one element, yet also, if I take a look at the general geopolitical image, if I check out the macroeconomic image, what our company saw in the final number of full weeks in terms of dryness, which, in my viewpoint, is a very clear indicator of the fragility of some aspects of the body, u00e2 $ u00a6 one ought to count on absolutely a much higher degree of volatility," he said.Another anxiety moving forward is actually financial policy and also whether central banks will definitely need to reduce prices more aggressively to deal with a slowdown in the economic climate. In Switzerland, where UBS is headquartered, the central bank has actually cut prices twice this year. The International Central Bank and the Banking Company of England have each announced one cut up until now." Understanding the occasions which are theu00c2 unknowns coming up like the united state presidential political election, our team ended up being obsequious along with a quite low dryness, currently our company are actually switching to an even more typical regime," Bruno Verstraete, creator of Lakefield Riches Monitoring informed CNBC Wednesday." In the circumstance of UBS, [additional dryness is actually] certainly not necessarily a bad thing, because even more dryness indicates even more investing profit," he included.