.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti stated Wednesday that market dryness could possibly increase in the 2nd half of the year, but he carries out not think the united state is heading right into a recession.Global equities observed stinging auctions recently as real estate investors digested weak financial records out of the U.S. which raised fears about an economical decline on the planet's most extensive economy. It likewise questioned about whether the Federal Get required to become less hawkish with its financial policy standpoint. The reserve bank always kept rates on hold in late July at a 23-year high.When asked about the expectation for the U.S. economy, Ermotti pointed out: "Not necessarily an economic crisis, however certainly a slowdown is actually achievable."" The macroeconomic clues are actually not clear enough to discuss economic downturns, and really, it's possibly premature. What we know is actually that the Fed possesses enough capacity to action in and also assistance that, although it is actually mosting likely to take time, whatever they do to be at that point transferred into the economic situation," the CEO said to CNBC on Wednesday after the financial institution mentioned its own second-quarter results.UBS expects that the Federal Book will cut prices by at the very least 50 basis points this year. At the moment, investors are actually divided in between a fifty and also a 25 manner point cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our team are actually likely to observe much higher market volatility in the 2nd half of the year, somewhat because of the U.S. political election in Nov." That is actually one variable, however also, if I check out the overall geopolitical photo, if I examine the macroeconomic image, what our experts observed in the last couple of full weeks in terms of dryness, which, in my standpoint, is a very clear indication of the delicacy of some aspects of the body, u00e2 $ u00a6 one need to anticipate most definitely a greater degree of dryness," he said.Another anxiety going forward is monetary policy as well as whether reserve banks are going to must cut rates much more aggressively to deal with a lag in the economy. In Switzerland, where UBS is headquartered, the central bank has reduced rates two times this year. The International Central Bank as well as the Financial Institution of England have both revealed one cut thus far." Understanding the events which are actually theu00c2 unknowns imminent like the U.S. presidential vote-casting, our experts came to be unconcerned with a quite low volatility, right now our experts are actually shifting to an extra ordinary regime," Bruno Verstraete, founder of Lakefield Riches Administration said to CNBC Wednesday." In the context of UBS, [even more volatility is actually] not always a bad thing, due to the fact that even more dryness suggests additional investing revenue," he added.