.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 magnify in the 2nd half of the year, yet he does certainly not think the USA is moving into a recession.Global equities viewed stinging sell-offs recently as investors digested unstable financial information out of the united state which reared concerns about an economic slump in the world's most extensive economic situation. It additionally raised questions regarding whether the Federal Reserve needed to become less hawkish along with its financial policy posture. The reserve bank maintained fees on grip in late July at a 23-year high.When asked them about the outlook for the united state economic condition, Ermotti stated: "Certainly not necessarily a downturn, yet undoubtedly a lag is actually possible."" The macroeconomic indications are actually not clear adequate to talk about economic downturns, as well as in fact, it's possibly premature. What we know is actually that the Fed possesses good enough capability to intervene and help that, although it's visiting take some time, whatever they carry out to become after that transmitted right into the economic condition," the CEO said to CNBC on Wednesday after the financial institution reported its own second-quarter results.UBS counts on that the Federal Get will definitely cut prices by at least 50 basis points this year. At the moment, traders are actually split in between a 50 and also a 25 basis factor cut at the Fed's upcoming conference in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our team are actually likely to observe greater market volatility in the second half of the year, somewhat as a result of the USA vote-casting in November." That's one factor, yet likewise, if I look at the general geopolitical picture, if I examine the macroeconomic photo, what our experts observed in the final number of full weeks in terms of dryness, which, in my viewpoint, is a clear indication of the delicacy of some factors of the device, u00e2 $ u00a6 one need to expect most definitely a greater level of dryness," he said.Another uncertainty going forward is monetary policy and also whether central banks will must cut prices extra strongly to battle a slowdown in the economic climate. In Switzerland, where UBS is actually headquartered, the reserve bank has reduced prices twice this year. The European Reserve Bank and also the Bank of England possess each introduced one cut up until now." Recognizing the events which are actually theu00c2 unknowns on the horizon like the U.S. governmental election, we ended up being obsequious with an extremely low volatility, currently we are actually changing to a much more typical regimen," Bruno Verstraete, owner of Lakefield Riches Administration informed CNBC Wednesday." In the context of UBS, [even more dryness is actually] certainly not necessarily a poor point, given that even more volatility implies even more investing income," he added.