.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market dryness might boost in the second half of the year, yet he does not feel the U.S. is actually moving right into a recession.Global equities saw sharp auctions last week as investors digested unstable economic data away from the U.S. which reared worries regarding an economical decline on earth's biggest economy. It likewise raised questions about whether the Federal Reserve needed to have to become less hawkish with its own financial policy stance. The reserve bank always kept fees on hold in late July at a 23-year high.When asked about the outlook for the united state economic condition, Ermotti stated: "Not always an economic crisis, but most definitely a stagnation is actually feasible."" The macroeconomic red flags are not clear adequate to refer to economic slumps, and also in fact, it is actually perhaps untimely. What we understand is that the Fed possesses good enough capability to come in and assistance that, although it is actually mosting likely to take some time, whatever they perform to become then transmitted right into the economic situation," the CEO informed CNBC on Wednesday after the banking company stated its second-quarter results.UBS expects that the Federal Get will definitely reduce costs through a minimum of fifty basis factors this year. At the moment, traders are actually divided between a 50 as well as a 25 manner factor cut at the Fed's following meeting in September, according to LSEG data.Speaking to CNBC, Ermotti said that our experts are actually probably to observe higher market volatility in the second one-half of the year, partly because of the U.S. vote-casting in Nov." That is actually one aspect, yet also, if I examine the total geopolitical image, if I examine the macroeconomic picture, what our team found in the last number of full weeks in regards to volatility, which, in my viewpoint, is actually a crystal clear indicator of the frailty of some factors of the unit, u00e2 $ u00a6 one need to count on definitely a greater level of volatility," he said.Another unpredictability going ahead is financial policy as well as whether reserve banks are going to must cut rates even more boldy to combat a stagnation in the economic climate. In Switzerland, where UBS is headquartered, the reserve bank has cut prices two times this year. The European Central Bank and also the Banking Company of England possess each introduced one cut thus far." Recognizing the celebrations which are theu00c2 unknowns imminent like the U.S. presidential election, we became satisfied with a very reduced volatility, currently our team are switching to a much more typical regimen," Bruno Verstraete, founder of Lakefield Wealth Monitoring told CNBC Wednesday." In the context of UBS, [more volatility is] certainly not always a negative factor, considering that additional dryness implies even more exchanging revenue," he incorporated.