.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness could possibly intensify in the second half of the year, but he performs not believe the U.S. is heading right into a recession.Global equities viewed stinging sell-offs recently as capitalists digested unstable financial records out of the united state which brought up anxieties concerning a financial slump on the planet's biggest economic situation. It additionally raised questions about whether the Federal Reserve needed to be a lot less hawkish along with its financial policy stance. The central bank kept fees on grip in late July at a 23-year high.When asked about the expectation for the united state economic situation, Ermotti stated: "Not automatically an economic slump, but absolutely a downturn is actually possible."" The macroeconomic indications are actually not clear sufficient to discuss financial crises, and also actually, it's possibly untimely. What we know is actually that the Fed has sufficient ability to step in and also help that, although it is actually going to take some time, whatever they perform to become after that transferred in to the economic climate," the chief executive officer informed CNBC on Wednesday after the financial institution stated its own second-quarter results.UBS expects that the Federal Get will certainly cut prices through at the very least fifty manner factors this year. Presently, traders are split in between a fifty as well as a 25 manner factor cut at the Fed's upcoming meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that we are probably to observe greater market volatility in the 2nd fifty percent of the year, somewhat because of the U.S. political election in November." That is actually one factor, however also, if I examine the general geopolitical picture, if I check out the macroeconomic picture, what our team saw in the last couple of weeks in terms of volatility, which, in my perspective, is a very clear sign of the delicacy of some elements of the system, u00e2 $ u00a6 one ought to count on certainly a higher level of dryness," he said.Another unpredictability moving forward is actually monetary policy and also whether central banks will certainly have to reduce rates more aggressively to deal with a downturn in the economy. In Switzerland, where UBS is headquartered, the central bank has actually cut rates two times this year. The International Reserve Bank and also the Bank of England have each declared one cut up until now." Knowing the events which are theu00c2 unknowns imminent like the united state presidential election, our experts became satisfied along with an extremely low dryness, right now we are changing to an even more normal regimen," Bruno Verstraete, founder of Lakefield Wealth Administration informed CNBC Wednesday." In the circumstance of UBS, [additional volatility is actually] not necessarily a bad factor, because additional dryness indicates additional investing revenue," he incorporated.