.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti said Wednesday that market volatility could increase in the second one-half of the year, yet he carries out not think the U.S. is heading into a recession.Global equities found stinging sell-offs recently as capitalists digested weak economical data out of the USA which raised worries regarding an economical downturn worldwide's biggest economic situation. It likewise raised questions concerning whether the Federal Book needed to be less hawkish along with its own monetary policy stance. The central bank kept rates on grip in late July at a 23-year high.When asked about the outlook for the united state economy, Ermotti claimed: "Not automatically a downturn, yet certainly a decline is achievable."" The macroeconomic signs are actually unclear enough to discuss financial crises, and actually, it's most likely early. What we understand is that the Fed has good enough capacity to action in as well as help that, although it's going to take a while, whatever they do to become then broadcast into the economic condition," the CEO told CNBC on Wednesday after the banking company reported its second-quarter results.UBS counts on that the Federal Book will cut costs by at least 50 manner points this year. Currently, investors are split between a fifty as well as a 25 basis point cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti stated that we are actually probably to view higher market volatility in the 2nd half of the year, partially because of the USA vote-casting in Nov." That's one variable, but additionally, if I check out the general geopolitical picture, if I take a look at the macroeconomic photo, what our company found in the last couple of full weeks in relations to dryness, which, in my viewpoint, is a very clear sign of the delicacy of some factors of the device, u00e2 $ u00a6 one need to count on absolutely a higher level of dryness," he said.Another anxiety going forward is financial plan and also whether central banks are going to have to reduce fees even more strongly to fight a lag in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has actually reduced prices two times this year. The International Central Bank as well as the Financial Institution of England have each declared one slice thus far." Knowing the events which are theu00c2 unknowns imminent like the united state presidential election, our experts came to be complacent with an incredibly reduced dryness, now we are shifting to an even more usual routine," Bruno Verstraete, owner of Lakefield Wide range Management said to CNBC Wednesday." In the situation of UBS, [additional volatility is actually] not automatically a negative thing, because more dryness means additional exchanging profit," he added.