.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness could possibly increase in the second fifty percent of the year, yet he carries out certainly not think the USA is heading right into a recession.Global equities found sharp sell-offs recently as financiers digested unstable economic information out of the U.S. which increased fears concerning an economic slump worldwide's largest economic climate. It additionally raised questions about whether the Federal Book needed to be a lot less hawkish along with its financial plan posture. The reserve bank kept rates on hold in overdue July at a 23-year high.When inquired about the overview for the united state economic climate, Ermotti stated: "Not always a recession, but absolutely a lag is possible."" The macroeconomic indicators are actually not clear enough to talk about recessions, and also actually, it is actually perhaps untimely. What we know is that the Fed has sufficient capability to step in as well as help that, although it's mosting likely to take a while, whatever they perform to be at that point transmitted in to the economic situation," the CEO informed CNBC on Wednesday after the financial institution disclosed its second-quarter results.UBS expects that the Federal Reserve will definitely cut prices through at the very least 50 basis points this year. Currently, traders are actually split between a fifty and a 25 basis aspect cut at the Fed's following meeting in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our company are actually likely to observe much higher market volatility in the 2nd half of the year, partially due to the USA political election in Nov." That is actually one factor, but likewise, if I examine the general geopolitical picture, if I take a look at the macroeconomic image, what our experts viewed in the final couple of full weeks in regards to volatility, which, in my point of view, is a crystal clear indication of the fragility of some aspects of the body, u00e2 $ u00a6 one should count on absolutely a much higher level of dryness," he said.Another anxiety moving forward is actually monetary policy as well as whether central banks will definitely have to cut rates more aggressively to deal with a lag in the economic climate. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut fees two times this year. The European Reserve Bank and also the Financial Institution of England have both declared one cut so far." Understanding the celebrations which are theu00c2 unknowns at hand like the united state presidential political election, our team came to be complacent with a quite reduced volatility, now our experts are actually shifting to a much more ordinary routine," Bruno Verstraete, owner of Lakefield Riches Management said to CNBC Wednesday." In the context of UBS, [additional dryness is actually] not necessarily a bad factor, given that even more dryness suggests even more exchanging profit," he added.