.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility might boost in the 2nd half of the year, but he performs not believe the U.S. is actually moving into a recession.Global equities found sharp sell-offs recently as real estate investors digested weak economic data out of the united state which raised worries about a financial downturn on the planet's largest economic condition. It likewise questioned about whether the Federal Reserve needed to have to be a lot less hawkish with its own financial plan viewpoint. The central bank always kept prices on grip in late July at a 23-year high.When inquired about the outlook for the united state economy, Ermotti mentioned: "Not essentially a downturn, yet absolutely a downturn is actually possible."" The macroeconomic red flags are actually unclear adequate to talk about recessions, and also really, it is actually possibly early. What we understand is that the Fed has good enough ability to come in and help that, although it's heading to take some time, whatever they carry out to become after that sent into the economic condition," the CEO told CNBC on Wednesday after the financial institution stated its second-quarter results.UBS anticipates that the Federal Book are going to cut rates by at the very least fifty basis points this year. Currently, investors are split in between a fifty as well as a 25 manner point cut at the Fed's next conference in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our company are actually likely to view much higher market dryness in the second fifty percent of the year, somewhat as a result of the U.S. election in November." That is actually one aspect, however likewise, if I check out the overall geopolitical picture, if I examine the macroeconomic picture, what our experts saw in the final couple of full weeks in terms of volatility, which, in my point of view, is a very clear sign of the delicacy of some factors of the system, u00e2 $ u00a6 one must count on undoubtedly a much higher level of volatility," he said.Another uncertainty going ahead is actually financial plan and also whether reserve banks are going to need to cut rates extra aggressively to fight a decline in the economic condition. In Switzerland, where UBS is headquartered, the central bank has actually reduced rates two times this year. The European Reserve Bank and also the Bank of England possess both introduced one cut so far." Knowing the events which are theu00c2 unknowns at hand like the united state presidential vote-casting, our company came to be contented with an extremely low volatility, now our experts are switching to an extra regular program," Bruno Verstraete, owner of Lakefield Wide range Control told CNBC Wednesday." In the context of UBS, [additional dryness is] certainly not essentially a negative factor, given that even more volatility indicates more exchanging earnings," he incorporated.