.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness could increase in the 2nd half of the year, however he does certainly not strongly believe the U.S. is actually heading in to a recession.Global equities found stinging sell-offs recently as entrepreneurs digested unstable economic records away from the U.S. which increased anxieties regarding an economic recession on earth's biggest economy. It likewise raised questions regarding whether the Federal Get needed to become less hawkish with its financial plan posture. The central bank maintained costs on hold in overdue July at a 23-year high.When asked about the outlook for the U.S. economic situation, Ermotti said: "Certainly not automatically a downturn, however most definitely a stagnation is possible."" The macroeconomic indications are unclear adequate to talk about downturns, and in fact, it is actually most likely premature. What we know is that the Fed has good enough ability to intervene and also help that, although it's heading to take a while, whatever they perform to be then transmitted into the economic situation," the chief executive officer informed CNBC on Wednesday after the banking company stated its second-quarter results.UBS expects that the Federal Get will cut prices through at the very least fifty manner aspects this year. Right now, investors are divided between a 50 as well as a 25 basis factor cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our experts are actually likely to observe greater market volatility in the 2nd half of the year, partially due to the united state vote-casting in November." That's one element, but additionally, if I examine the overall geopolitical image, if I consider the macroeconomic image, what we found in the last number of full weeks in relations to dryness, which, in my standpoint, is actually a clear indicator of the fragility of some aspects of the body, u00e2 $ u00a6 one need to count on undoubtedly a higher level of dryness," he said.Another uncertainty going ahead is financial plan and also whether reserve banks will need to cut fees even more strongly to deal with a downturn in the economic condition. In Switzerland, where UBS is headquartered, the reserve bank has actually reduced rates twice this year. The European Reserve Bank and also the Financial Institution of England possess each declared one cut thus far." Recognizing the celebrations which are actually theu00c2 unknowns imminent like the USA presidential election, our team came to be satisfied along with a very low volatility, currently our experts are actually switching to an even more typical regime," Bruno Verstraete, owner of Lakefield Wide range Administration said to CNBC Wednesday." In the context of UBS, [more dryness is] not essentially a negative trait, because even more dryness implies additional trading earnings," he incorporated.