.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market dryness could possibly increase in the 2nd fifty percent of the year, but he does certainly not think the united state is actually moving right into a recession.Global equities found sharp auctions recently as investors digested unstable economical records away from the united state which raised worries concerning a financial decline on the planet's biggest economic situation. It additionally questioned concerning whether the Federal Book needed to have to become a lot less hawkish along with its monetary policy stance. The central bank always kept prices on grip in overdue July at a 23-year high.When asked about the overview for the united state economic climate, Ermotti mentioned: "Not necessarily a downturn, but certainly a slowdown is feasible."" The macroeconomic indicators are unclear adequate to speak about downturns, as well as in fact, it's possibly untimely. What we know is that the Fed has sufficient capacity to come in and also help that, although it's mosting likely to take some time, whatever they carry out to become at that point broadcast into the economic climate," the chief executive officer informed CNBC on Wednesday after the bank stated its second-quarter results.UBS anticipates that the Federal Get will definitely cut rates through at least fifty manner factors this year. Currently, traders are actually split in between a 50 and a 25 basis point cut at the Fed's next appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that we are actually probably to observe greater market dryness in the second fifty percent of the year, partly because of the USA political election in November." That is actually one variable, however likewise, if I take a look at the overall geopolitical photo, if I check out the macroeconomic picture, what we observed in the last couple of full weeks in terms of volatility, which, in my perspective, is a clear sign of the fragility of some elements of the system, u00e2 $ u00a6 one ought to expect absolutely a much higher degree of dryness," he said.Another anxiety going ahead is actually financial policy and whether central banks will certainly have to reduce prices much more boldy to cope with a stagnation in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has actually cut prices twice this year. The International Central Bank and also the Banking Company of England have both declared one cut up until now." Knowing the activities which are theu00c2 unknowns on the horizon like the USA governmental political election, our company ended up being unconcerned with a very low volatility, currently we are actually moving to an extra usual routine," Bruno Verstraete, owner of Lakefield Riches Management told CNBC Wednesday." In the situation of UBS, [more volatility is actually] not always a bad trait, given that more volatility suggests even more investing revenue," he added.