.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness could intensify in the second one-half of the year, yet he performs certainly not think the united state is moving right into a recession.Global equities saw sharp auctions recently as clients digested unstable economic records away from the USA which increased worries regarding an economic decline worldwide's biggest economic situation. It likewise raised questions regarding whether the Federal Book needed to have to be much less hawkish with its financial policy viewpoint. The reserve bank always kept rates on hold in overdue July at a 23-year high.When asked them about the expectation for the USA economic situation, Ermotti mentioned: "Not automatically a downturn, yet certainly a lag is possible."" The macroeconomic indications are unclear sufficient to speak about recessions, and also really, it's probably premature. What we know is that the Fed has sufficient ability to come in and support that, although it's going to require time, whatever they perform to be at that point transferred right into the economic situation," the CEO informed CNBC on Wednesday after the banking company stated its own second-quarter results.UBS counts on that the Federal Reserve are going to cut rates by at the very least 50 manner points this year. Currently, traders are split between a fifty and also a 25 manner aspect cut at the Fed's following appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our team are actually most likely to observe higher market dryness in the 2nd fifty percent of the year, partially due to the USA vote-casting in Nov." That is actually one element, however additionally, if I look at the total geopolitical image, if I take a look at the macroeconomic image, what our experts saw in the final couple of full weeks in regards to dryness, which, in my standpoint, is actually a crystal clear indication of the fragility of some elements of the device, u00e2 $ u00a6 one ought to expect certainly a higher level of volatility," he said.Another uncertainty moving forward is actually monetary policy and also whether central banks will need to reduce fees extra boldy to fight a slowdown in the economy. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut fees twice this year. The European Reserve Bank and the Bank of England have both declared one cut thus far." Understanding the celebrations which are actually theu00c2 unknowns imminent like the USA governmental political election, our company ended up being complacent with an incredibly reduced volatility, currently our company are actually moving to a more typical program," Bruno Verstraete, founder of Lakefield Riches Administration said to CNBC Wednesday." In the situation of UBS, [additional dryness is] certainly not always a negative thing, because additional dryness suggests even more exchanging profit," he incorporated.