.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market volatility might heighten in the 2nd one-half of the year, but he performs not feel the USA is actually moving into a recession.Global equities found stinging auctions recently as financiers digested weak financial records away from the U.S. which increased anxieties about an economic recession in the world's biggest economy. It likewise raised questions regarding whether the Federal Book needed to have to be a lot less hawkish with its monetary plan posture. The reserve bank maintained fees on grip in late July at a 23-year high.When asked about the overview for the USA economic situation, Ermotti claimed: "Certainly not always a recession, yet absolutely a lag is actually achievable."" The macroeconomic red flags are actually not clear enough to refer to economic downturns, as well as actually, it is actually most likely early. What we understand is actually that the Fed possesses sufficient capacity to step in and also support that, although it's mosting likely to take time, whatever they perform to be then sent into the economic condition," the CEO informed CNBC on Wednesday after the financial institution disclosed its second-quarter results.UBS counts on that the Federal Get will definitely cut prices by at least fifty basis points this year. Right now, investors are actually split in between a fifty as well as a 25 basis factor cut at the Fed's following appointment in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our team are actually very likely to see much higher market volatility in the 2nd one-half of the year, somewhat due to the U.S. political election in Nov." That is actually one variable, however also, if I consider the overall geopolitical picture, if I consider the macroeconomic photo, what our team saw in the last couple of full weeks in terms of dryness, which, in my standpoint, is a clear indication of the fragility of some elements of the body, u00e2 $ u00a6 one should expect undoubtedly a higher degree of dryness," he said.Another anxiety going forward is financial policy and also whether reserve banks will definitely must cut fees even more strongly to deal with a decline in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has reduced costs two times this year. The International Reserve Bank and also the Financial Institution of England have both announced one slice up until now." Understanding the activities which are actually theu00c2 unknowns imminent like the U.S. governmental election, our experts came to be obsequious along with a really reduced volatility, now we are shifting to an extra normal routine," Bruno Verstraete, owner of Lakefield Wide range Monitoring said to CNBC Wednesday." In the situation of UBS, [more volatility is actually] not necessarily a bad trait, considering that additional dryness indicates additional investing earnings," he included.