.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market volatility could possibly intensify in the second fifty percent of the year, but he carries out certainly not feel the USA is moving into a recession.Global equities observed stinging auctions recently as capitalists digested unstable economical records out of the united state which raised concerns regarding an economical slump on the planet's biggest economic condition. It likewise questioned about whether the Federal Reserve required to become less hawkish along with its own financial policy posture. The central bank maintained fees on hold in late July at a 23-year high.When asked about the expectation for the USA economy, Ermotti stated: "Certainly not always a downturn, but most definitely a slowdown is actually possible."" The macroeconomic red flags are actually not clear adequate to speak about economic slumps, and also actually, it's perhaps early. What we understand is actually that the Fed possesses good enough capacity to come in and help that, although it's going to take some time, whatever they do to become after that broadcast in to the economic climate," the CEO told CNBC on Wednesday after the financial institution mentioned its own second-quarter results.UBS anticipates that the Federal Get are going to cut prices through a minimum of fifty manner aspects this year. Presently, traders are divided in between a 50 and a 25 basis point cut at the Fed's next conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that our experts are likely to view much higher market volatility in the 2nd one-half of the year, somewhat due to the USA vote-casting in Nov." That is actually one aspect, but also, if I examine the total geopolitical image, if I check out the macroeconomic picture, what our team found in the last number of full weeks in relations to dryness, which, in my point of view, is a crystal clear indication of the fragility of some factors of the device, u00e2 $ u00a6 one should expect certainly a greater degree of dryness," he said.Another unpredictability going forward is monetary plan as well as whether central banks will definitely need to reduce rates a lot more strongly to fight a stagnation in the economy. In Switzerland, where UBS is headquartered, the reserve bank has reduced fees two times this year. The International Reserve Bank and the Bank of England have each declared one slice up until now." Knowing the activities which are actually theu00c2 unknowns on the horizon like the USA presidential election, our company became contented along with a very low volatility, currently our experts are shifting to an extra usual program," Bruno Verstraete, owner of Lakefield Wealth Control said to CNBC Wednesday." In the context of UBS, [more dryness is] certainly not necessarily a poor point, since additional dryness indicates additional investing revenue," he included.