.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness can escalate in the second half of the year, however he performs not feel the USA is moving into a recession.Global equities found sharp sell-offs recently as clients digested unstable economic information out of the U.S. which raised worries concerning an economical recession in the world's biggest economic condition. It likewise raised questions about whether the Federal Get required to become less hawkish along with its own financial plan viewpoint. The reserve bank maintained costs on hold in overdue July at a 23-year high.When inquired about the expectation for the U.S. economic condition, Ermotti said: "Not essentially a recession, but absolutely a decline is feasible."" The macroeconomic indicators are not clear sufficient to speak about economic downturns, and also in fact, it's possibly early. What we understand is actually that the Fed has sufficient capacity to come in as well as support that, although it's heading to take some time, whatever they carry out to be at that point transmitted right into the economic situation," the CEO said to CNBC on Wednesday after the banking company disclosed its second-quarter results.UBS expects that the Federal Book will certainly cut rates by a minimum of 50 manner aspects this year. At the moment, traders are actually split in between a 50 as well as a 25 basis aspect cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that we are actually most likely to view greater market dryness in the second half of the year, partly due to the U.S. election in Nov." That is actually one element, however likewise, if I take a look at the general geopolitical picture, if I look at the macroeconomic photo, what our experts found in the final couple of weeks in regards to dryness, which, in my perspective, is a clear indicator of the frailty of some factors of the body, u00e2 $ u00a6 one must count on most definitely a greater degree of volatility," he said.Another unpredictability moving forward is financial policy and also whether reserve banks will certainly must reduce costs extra boldy to fight a decline in the economy. In Switzerland, where UBS is headquartered, the reserve bank has cut prices two times this year. The International Reserve Bank and the Financial Institution of England possess each introduced one cut up until now." Recognizing the celebrations which are theu00c2 unknowns at hand like the USA governmental vote-casting, our company came to be obsequious along with a really reduced volatility, right now our team are shifting to a more typical program," Bruno Verstraete, owner of Lakefield Riches Control informed CNBC Wednesday." In the circumstance of UBS, [more volatility is] certainly not essentially a poor thing, due to the fact that additional dryness means more exchanging earnings," he added.