.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility might intensify in the 2nd fifty percent of the year, but he performs certainly not strongly believe the U.S. is actually moving right into a recession.Global equities viewed stinging sell-offs last week as entrepreneurs digested weak economic information out of the USA which raised worries regarding an economical recession on earth's most extensive economic climate. It additionally raised questions about whether the Federal Book required to be less hawkish with its own financial policy stance. The central bank maintained prices on grip in late July at a 23-year high.When inquired about the expectation for the USA economic situation, Ermotti mentioned: "Certainly not automatically an economic crisis, but most definitely a slowdown is actually achievable."" The macroeconomic clues are actually not clear sufficient to discuss economic downturns, and also really, it's possibly untimely. What we understand is actually that the Fed has good enough ability to action in and help that, although it's going to require time, whatever they perform to become after that transmitted in to the economic climate," the chief executive officer told CNBC on Wednesday after the financial institution disclosed its second-quarter results.UBS counts on that the Federal Book will certainly reduce fees through at the very least fifty manner points this year. At the moment, investors are split between a 50 as well as a 25 basis point cut at the Fed's next meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our experts are probably to see much higher market volatility in the second fifty percent of the year, somewhat as a result of the united state vote-casting in Nov." That's one factor, however additionally, if I check out the general geopolitical picture, if I look at the macroeconomic picture, what our experts observed in the last couple of full weeks in terms of dryness, which, in my standpoint, is a crystal clear indicator of the fragility of some aspects of the device, u00e2 $ u00a6 one must count on most definitely a higher level of volatility," he said.Another anxiety going ahead is actually monetary policy and whether central banks will definitely have to cut prices more strongly to combat a stagnation in the economic situation. In Switzerland, where UBS is headquartered, the central bank has cut fees two times this year. The European Central Bank and also the Banking Company of England have each introduced one slice thus far." Knowing the events which are theu00c2 unknowns on the horizon like the united state governmental vote-casting, our company became unconcerned along with a really reduced volatility, currently our team are moving to an extra ordinary regime," Bruno Verstraete, creator of Lakefield Riches Administration said to CNBC Wednesday." In the circumstance of UBS, [additional volatility is] not essentially a poor trait, since additional dryness means even more investing revenue," he included.