.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market volatility could escalate in the 2nd fifty percent of the year, yet he performs not believe the USA is moving into a recession.Global equities found sharp auctions recently as real estate investors digested unstable financial records away from the U.S. which reared concerns about an economical downturn worldwide's biggest economic condition. It likewise raised questions concerning whether the Federal Reserve needed to be a lot less hawkish with its monetary plan position. The central bank maintained fees on grip in overdue July at a 23-year high.When inquired about the outlook for the U.S. economic climate, Ermotti claimed: "Not essentially an economic crisis, yet most definitely a lag is feasible."" The macroeconomic indicators are not clear sufficient to discuss recessions, and also really, it's most likely untimely. What we know is that the Fed has sufficient capability to come in and assistance that, although it's visiting take time, whatever they do to be then broadcast in to the economic condition," the CEO said to CNBC on Wednesday after the bank mentioned its own second-quarter results.UBS anticipates that the Federal Get will certainly cut rates through a minimum of 50 basis points this year. Currently, traders are actually split in between a fifty and also a 25 manner point cut at the Fed's upcoming conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that our experts are likely to see higher market dryness in the 2nd one-half of the year, somewhat as a result of the U.S. election in November." That's one aspect, however also, if I examine the general geopolitical picture, if I check out the macroeconomic photo, what our company saw in the last number of full weeks in regards to volatility, which, in my standpoint, is actually a clear indication of the delicacy of some aspects of the system, u00e2 $ u00a6 one must anticipate definitely a greater level of volatility," he said.Another uncertainty going ahead is monetary policy as well as whether reserve banks are going to must reduce costs much more boldy to cope with a decline in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has actually cut prices two times this year. The International Reserve Bank as well as the Bank of England have both introduced one cut thus far." Recognizing the celebrations which are actually theu00c2 unknowns on the horizon like the united state governmental vote-casting, our team came to be contented with a quite reduced dryness, right now our team are switching to an extra usual regimen," Bruno Verstraete, founder of Lakefield Riches Monitoring told CNBC Wednesday." In the situation of UBS, [more dryness is actually] certainly not always a negative point, considering that more volatility indicates even more exchanging revenue," he included.