.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market volatility can heighten in the second fifty percent of the year, however he performs certainly not believe the U.S. is heading right into a recession.Global equities saw stinging sell-offs recently as entrepreneurs digested weak financial records away from the united state which reared anxieties concerning an economic recession on the planet's most extensive economic condition. It additionally raised questions about whether the Federal Reserve needed to become much less hawkish along with its monetary plan posture. The central bank always kept costs on grip in late July at a 23-year high.When asked them about the expectation for the USA economic situation, Ermotti pointed out: "Not essentially a recession, yet certainly a lag is possible."" The macroeconomic clues are unclear adequate to talk about downturns, and also in fact, it's perhaps untimely. What we know is that the Fed has good enough capacity to action in as well as help that, although it is actually mosting likely to take time, whatever they perform to become at that point sent in to the economy," the chief executive officer told CNBC on Wednesday after the bank stated its second-quarter results.UBS counts on that the Federal Reserve will cut fees through at the very least fifty basis points this year. Currently, investors are split in between a fifty as well as a 25 basis factor cut at the Fed's following meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our experts are actually very likely to see greater market dryness in the 2nd half of the year, partly because of the U.S. election in Nov." That is actually one aspect, however likewise, if I consider the overall geopolitical image, if I consider the macroeconomic image, what our company observed in the last number of weeks in relations to dryness, which, in my perspective, is a very clear sign of the delicacy of some elements of the system, u00e2 $ u00a6 one must expect undoubtedly a much higher degree of dryness," he said.Another anxiety going forward is actually financial plan and also whether reserve banks will definitely need to reduce costs a lot more aggressively to battle a lag in the economy. In Switzerland, where UBS is actually headquartered, the reserve bank has actually reduced costs two times this year. The International Central Bank and also the Banking Company of England have both revealed one slice up until now." Knowing the events which are actually theu00c2 unknowns coming up like the united state governmental election, our company became unconcerned along with a quite low volatility, now we are moving to a much more regular regime," Bruno Verstraete, creator of Lakefield Wealth Monitoring told CNBC Wednesday." In the context of UBS, [more dryness is actually] not necessarily a negative point, because even more volatility implies additional exchanging income," he added.