.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market dryness can intensify in the 2nd fifty percent of the year, yet he does certainly not believe the U.S. is heading right into a recession.Global equities viewed sharp sell-offs recently as entrepreneurs digested unstable financial data out of the united state which raised fears regarding a financial downturn on the planet's most extensive economy. It additionally questioned concerning whether the Federal Book needed to be less hawkish along with its monetary plan standpoint. The reserve bank always kept costs on grip in overdue July at a 23-year high.When asked them about the outlook for the USA economic climate, Ermotti mentioned: "Certainly not automatically an economic downturn, yet most definitely a downturn is possible."" The macroeconomic red flags are not clear adequate to discuss downturns, as well as really, it is actually perhaps premature. What we know is that the Fed has enough capacity to action in and also help that, although it's visiting take a while, whatever they carry out to become at that point sent into the economic condition," the CEO said to CNBC on Wednesday after the bank mentioned its second-quarter results.UBS expects that the Federal Reserve will cut fees by at the very least 50 manner aspects this year. Presently, investors are actually split between a 50 and also a 25 basis factor cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our team are very likely to view greater market volatility in the second fifty percent of the year, partly because of the U.S. vote-casting in Nov." That is actually one aspect, however likewise, if I examine the overall geopolitical photo, if I consider the macroeconomic photo, what our company found in the last couple of weeks in relations to volatility, which, in my viewpoint, is a clear indicator of the fragility of some aspects of the device, u00e2 $ u00a6 one ought to count on definitely a higher degree of volatility," he said.Another uncertainty going forward is monetary policy and whether central banks will certainly must reduce prices much more boldy to deal with a decline in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut fees two times this year. The International Reserve Bank and also the Financial Institution of England have both declared one cut thus far." Understanding the activities which are theu00c2 unknowns on the horizon like the united state presidential vote-casting, our company came to be obsequious along with a really low dryness, now we are actually changing to a much more regular regimen," Bruno Verstraete, founder of Lakefield Wealth Management told CNBC Wednesday." In the circumstance of UBS, [more volatility is] certainly not always a bad thing, given that even more volatility means more trading income," he incorporated.