.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 can escalate in the second fifty percent of the year, however he performs not believe the united state is moving in to a recession.Global equities viewed stinging sell-offs recently as financiers digested unstable financial records away from the USA which raised anxieties about a financial slump on earth's largest economic situation. It also questioned regarding whether the Federal Get required to become less hawkish with its own financial policy position. The reserve bank always kept costs on grip in overdue July at a 23-year high.When inquired about the expectation for the U.S. economic climate, Ermotti said: "Certainly not essentially a recession, but definitely a downturn is actually achievable."" The macroeconomic indications are actually unclear enough to talk about downturns, and really, it is actually most likely early. What we understand is actually that the Fed has enough capacity to come in and help that, although it's mosting likely to take a while, whatever they carry out to become then sent right into the economy," the CEO said to CNBC on Wednesday after the bank mentioned its own second-quarter results.UBS counts on that the Federal Get will certainly cut rates through at the very least 50 basis points this year. Currently, investors are split between a fifty as well as a 25 basis aspect cut at the Fed's next meeting in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our company are very likely to see much higher market dryness in the 2nd one-half of the year, somewhat due to the USA political election in November." That is actually one aspect, however likewise, if I check out the total geopolitical image, if I take a look at the macroeconomic image, what our experts observed in the last number of weeks in regards to volatility, which, in my point of view, is a clear indication of the fragility of some elements of the device, u00e2 $ u00a6 one need to expect most definitely a greater degree of volatility," he said.Another unpredictability going ahead is financial plan and also whether reserve banks will certainly have to reduce rates even more boldy to battle a slowdown in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has actually reduced rates twice this year. The European Central Bank as well as the Banking Company of England have each revealed one slice thus far." Knowing the occasions which are theu00c2 unknowns imminent like the united state presidential election, our company became obsequious along with an incredibly low dryness, currently we are moving to an extra normal routine," Bruno Verstraete, founder of Lakefield Wealth Monitoring said to CNBC Wednesday." In the circumstance of UBS, [even more dryness is actually] not essentially a negative trait, considering that even more volatility implies more investing income," he added.