.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market dryness can heighten in the second fifty percent of the year, yet he does certainly not feel the USA is moving in to a recession.Global equities found sharp sell-offs last week as real estate investors digested unstable economical information away from the united state which brought up concerns regarding a financial recession on earth's most extensive economic climate. It additionally raised questions concerning whether the Federal Get required to become much less hawkish with its monetary policy viewpoint. The reserve bank always kept prices on hold in late July at a 23-year high.When inquired about the overview for the U.S. economic climate, Ermotti pointed out: "Certainly not essentially a downturn, yet most definitely a stagnation is actually feasible."" The macroeconomic indications are actually unclear enough to talk about economic downturns, and in fact, it's probably early. What we know is that the Fed has good enough capability to intervene as well as help that, although it is actually visiting require time, whatever they do to become after that broadcast into the economic climate," the chief executive officer informed CNBC on Wednesday after the banking company disclosed its second-quarter results.UBS counts on that the Federal Book will certainly reduce rates by at the very least 50 basis aspects this year. Currently, traders are actually split 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 mentioned that our team are actually most likely to see much higher market volatility in the 2nd one-half of the year, somewhat due to the united state election in Nov." That's one element, however additionally, if I consider the general geopolitical image, if I take a look at the macroeconomic photo, what we viewed in the last number of full weeks in regards to volatility, which, in my viewpoint, is a clear indicator of the frailty of some components of the device, u00e2 $ u00a6 one ought to count on most definitely a greater degree of dryness," he said.Another uncertainty going forward is financial policy and also whether central banks will must cut prices much more aggressively to battle a downturn in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has reduced prices twice this year. The European Central Bank and the Financial Institution of England possess both introduced one slice thus far." Understanding the events which are theu00c2 unknowns on the horizon like the united state governmental election, our company ended up being unconcerned along with a very reduced dryness, currently our team are actually moving to a much more normal routine," Bruno Verstraete, owner of Lakefield Wealth Administration informed CNBC Wednesday." In the context of UBS, [additional volatility is actually] not essentially a bad thing, because even more dryness indicates more trading revenue," he added.