.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market dryness could boost in the second one-half of the year, however he performs not think the USA is actually moving right into a recession.Global equities observed sharp auctions recently as financiers digested weak economical records away from the USA which raised fears regarding a financial decline on the planet's most extensive economic condition. It likewise questioned about whether the Federal Book required to become a lot less hawkish along with its own financial policy stance. The reserve bank always kept rates on hold in late July at a 23-year high.When inquired about the overview for the U.S. economy, Ermotti pointed out: "Certainly not essentially a downturn, yet absolutely a slowdown is feasible."" The macroeconomic indications are actually not clear adequate to refer to economic downturns, and actually, it is actually perhaps early. What we know is that the Fed possesses sufficient capability to step in and assistance that, although it is actually visiting take time, whatever they perform to be after that transferred right into the economic condition," the CEO told CNBC on Wednesday after the banking company mentioned its second-quarter results.UBS counts on that the Federal Get will cut fees through at the very least fifty basis factors this year. Currently, traders are actually split in between a 50 and a 25 manner point cut at the Fed's next meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that our company are actually likely to view greater market dryness in the second half of the year, somewhat as a result of the USA vote-casting in Nov." That's one aspect, but also, if I consider the total geopolitical picture, if I look at the macroeconomic image, what our team observed in the final number of full weeks in relations to volatility, which, in my viewpoint, is a crystal clear indicator of the frailty of some factors of the body, u00e2 $ u00a6 one should count on definitely a greater degree of volatility," he said.Another uncertainty moving forward is monetary plan as well as whether central banks will need to cut rates more boldy to battle a slowdown in the economy. In Switzerland, where UBS is headquartered, the central bank has cut fees twice this year. The European Reserve Bank and also the Banking Company of England possess each introduced one slice up until now." Recognizing the activities which are actually theu00c2 unknowns imminent like the USA governmental election, our company came to be obsequious along with an extremely reduced dryness, currently our team are actually shifting to an even more typical program," Bruno Verstraete, founder of Lakefield Wealth Administration said to CNBC Wednesday." In the situation of UBS, [more volatility is] not necessarily a bad point, considering that additional volatility suggests more trading profit," he incorporated.