.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market dryness could possibly intensify in the second fifty percent of the year, but he performs certainly not think the U.S. is heading into a recession.Global equities viewed stinging sell-offs recently as capitalists digested unstable economic data away from the USA which reared fears concerning a financial decline in the world's biggest economic climate. It also raised questions about whether the Federal Book needed to have to be less hawkish along with its monetary plan standpoint. The central bank always kept costs on hold in overdue July at a 23-year high.When asked them about the overview for the U.S. economic situation, Ermotti claimed: "Not automatically a downturn, yet definitely a slowdown is possible."" The macroeconomic indications are unclear sufficient to talk about economic downturns, and also really, it's perhaps premature. What we understand is that the Fed possesses enough ability to action in and also help that, although it's mosting likely to require time, whatever they do to be after that transmitted into the economy," the CEO said to CNBC on Wednesday after the banking company disclosed its own second-quarter results.UBS counts on that the Federal Book are going to reduce prices through at least 50 basis points this year. Currently, investors are actually divided between a 50 and also a 25 basis point cut at the Fed's upcoming appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our company are very likely to observe much higher market volatility in the 2nd fifty percent of the year, somewhat as a result of the united state election in November." That's one aspect, yet additionally, if I check out the total geopolitical image, if I take a look at the macroeconomic image, what our company viewed in the final number of full weeks in regards to volatility, which, in my perspective, is actually a crystal clear indicator of the frailty of some components of the body, u00e2 $ u00a6 one should count on definitely a much higher level of dryness," he said.Another uncertainty moving forward is monetary plan and also whether reserve banks are going to must cut costs a lot more aggressively to cope with a slowdown in the economy. In Switzerland, where UBS is headquartered, the central bank has cut costs twice this year. The European Central Bank and the Bank of England have each revealed one slice so far." Recognizing the celebrations which are theu00c2 unknowns on the horizon like the USA presidential election, our team came to be contented with an extremely low dryness, now our team are switching to an even more normal routine," Bruno Verstraete, owner of Lakefield Riches Administration said to CNBC Wednesday." In the context of UBS, [even more dryness is] not automatically a bad factor, given that additional volatility implies even more trading revenue," he incorporated.