.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market volatility can intensify in the 2nd fifty percent of the year, yet he performs not think the U.S. is actually heading in to a recession.Global equities found stinging sell-offs recently as clients digested unstable economic records away from the U.S. which increased fears about a financial downturn around the world's largest economic condition. It additionally questioned about whether the Federal Reserve required to become much less hawkish with its own monetary policy position. The reserve bank always kept costs on hold in overdue July at a 23-year high.When inquired about the overview for the united state economy, Ermotti stated: "Certainly not essentially an economic slump, however certainly a downturn is actually possible."" The macroeconomic indicators are not clear adequate to refer to economic downturns, as well as actually, it is actually most likely premature. What we know is that the Fed has sufficient capacity to step in as well as help that, although it's visiting require time, whatever they carry out to be after that transmitted right into the economic condition," the CEO said to CNBC on Wednesday after the bank disclosed its second-quarter results.UBS anticipates that the Federal Get will definitely reduce prices through a minimum of fifty basis points this year. Right now, traders are actually divided between a 50 as well as a 25 manner factor cut at the Fed's next meeting in September, according to LSEG data.Speaking to CNBC, Ermotti said that our company are actually most likely to view greater market volatility in the 2nd one-half of the year, somewhat because of the USA political election in November." That's one factor, but likewise, if I look at the general geopolitical picture, if I look at the macroeconomic picture, what our company viewed in the last couple of full weeks in terms of dryness, which, in my viewpoint, is actually a crystal clear indicator of the frailty of some aspects of the device, u00e2 $ u00a6 one need to count on most definitely a higher degree of volatility," he said.Another unpredictability going ahead is financial plan as well as whether central banks will certainly need to reduce rates even more boldy to battle a lag in the economic situation. In Switzerland, where UBS is headquartered, the central bank has cut fees twice this year. The European Reserve Bank and the Financial Institution of England possess each announced one cut up until now." Knowing the celebrations which are actually theu00c2 unknowns imminent like the USA governmental vote-casting, our team came to be unconcerned with a really reduced volatility, right now our experts are actually switching to a more regular program," Bruno Verstraete, founder of Lakefield Riches Management said to CNBC Wednesday." In the context of UBS, [more volatility is actually] certainly not essentially a negative thing, because even more dryness indicates more exchanging earnings," he added.