.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market volatility could possibly intensify in the 2nd fifty percent of the year, however he does certainly not believe the U.S. is heading right into a recession.Global equities viewed sharp auctions recently as clients digested unstable financial data away from the U.S. which raised anxieties about an economic decline on earth's biggest economic situation. It also questioned concerning whether the Federal Book needed to become a lot less hawkish along with its financial policy posture. The reserve bank always kept costs on grip in late July at a 23-year high.When asked about the overview for the united state economic condition, Ermotti said: "Certainly not always an economic downturn, but most definitely a lag is actually possible."" The macroeconomic signs are not clear enough to speak about economic crises, as well as in fact, it is actually perhaps untimely. What we understand is actually that the Fed has sufficient ability to step in and also help that, although it's heading to take some time, whatever they do to become after that sent in to the economic climate," the chief executive officer informed CNBC on Wednesday after the banking company mentioned its own second-quarter results.UBS counts on that the Federal Book are going to reduce fees through at least fifty basis points this year. Currently, investors are split in between a 50 and also a 25 manner factor cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that our company are probably to find higher market volatility in the second one-half of the year, somewhat as a result of the USA political election in Nov." That is actually one aspect, but additionally, if I check out the overall geopolitical picture, if I examine the macroeconomic photo, what our company saw in the final number of full weeks in regards to volatility, which, in my standpoint, is actually a crystal clear indication of the frailty of some components of the body, u00e2 $ u00a6 one must count on most definitely a greater level of dryness," he said.Another uncertainty moving forward is actually financial plan as well as whether central banks will certainly need to reduce costs much more strongly to combat a slowdown in the economy. In Switzerland, where UBS is actually headquartered, the central bank has reduced prices two times this year. The International Reserve Bank as well as the Bank of England possess each announced one slice thus far." Understanding the occasions which are actually theu00c2 unknowns at hand like the U.S. governmental election, our experts came to be contented along with a very reduced dryness, right now our company are shifting to a much more ordinary regime," Bruno Verstraete, founder of Lakefield Wide range Management told CNBC Wednesday." In the situation of UBS, [more dryness is] not essentially a negative factor, given that more dryness implies additional exchanging income," he added.