.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility could possibly intensify in the second fifty percent of the year, yet he does not feel the U.S. is actually heading into a recession.Global equities found sharp auctions recently as entrepreneurs digested weak economical data away from the united state which brought up fears concerning a financial decline around the world's largest economic situation. It also questioned regarding whether the Federal Book needed to become much less hawkish along with its monetary plan standpoint. The reserve bank always kept costs on hold in overdue July at a 23-year high.When asked about the outlook for the U.S. economic condition, Ermotti stated: "Not automatically an economic downturn, but absolutely a slowdown is possible."" The macroeconomic red flags are not clear enough to talk about recessions, as well as actually, it is actually most likely premature. What we know is actually that the Fed has sufficient ability to action in and help that, although it's mosting likely to take some time, whatever they do to become after that sent right into the economic situation," the CEO informed CNBC on Wednesday after the bank stated its second-quarter results.UBS counts on that the Federal Get will reduce fees by a minimum of fifty basis points this year. Right now, investors are split between a fifty and a 25 manner aspect cut at the Fed's next conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our company are most likely to view higher market dryness in the 2nd one-half of the year, somewhat due to the USA vote-casting in November." That's one aspect, however additionally, if I examine the general geopolitical photo, if I look at the macroeconomic picture, what our company saw in the final number of weeks in relations to dryness, which, in my point of view, is actually a very clear indicator of the fragility of some factors of the unit, u00e2 $ u00a6 one need to count on definitely a much higher degree of dryness," he said.Another unpredictability going ahead is actually monetary plan as well as whether central banks will definitely must reduce costs even more aggressively to combat a decline in the economic condition. In Switzerland, where UBS is headquartered, the central bank has actually reduced costs two times this year. The European Central Bank as well as the Banking Company of England possess each revealed one slice thus far." Understanding the celebrations which are actually theu00c2 unknowns coming up like the USA presidential election, our company ended up being complacent along with an incredibly reduced volatility, currently our company are moving to an even more typical regimen," Bruno Verstraete, creator of Lakefield Wealth Monitoring informed CNBC Wednesday." In the circumstance of UBS, [even more dryness is actually] not always a bad factor, because more dryness suggests more exchanging revenue," he incorporated.