.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market dryness can increase in the second one-half of the year, but he carries out certainly not strongly believe the united state is actually heading in to a recession.Global equities found sharp sell-offs last week as financiers digested unstable economic data out of the united state which increased worries regarding an economic slump around the world's biggest economic condition. It also questioned concerning whether the Federal Reserve required to become much less hawkish along with its monetary plan viewpoint. The reserve bank always kept rates on hold in overdue July at a 23-year high.When asked about the expectation for the U.S. economic situation, Ermotti said: "Not automatically a financial crisis, yet most definitely a decline is achievable."" The macroeconomic indicators are actually not clear sufficient to discuss economic downturns, and also really, it's probably early. What we know is that the Fed has sufficient ability to action in and also help that, although it's going to take time, whatever they perform to become at that point sent in to the economic condition," the CEO told CNBC on Wednesday after the banking company stated its second-quarter results.UBS anticipates that the Federal Reserve will definitely reduce rates by a minimum of 50 manner factors this year. Currently, traders are divided in between a fifty as well as a 25 basis factor cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our company are actually most likely to view higher market dryness in the second one-half of the year, partially as a result of the united state political election in November." That is actually one factor, but likewise, if I take a look at the total geopolitical image, if I check out the macroeconomic image, what we viewed in the final number of full weeks in regards to dryness, which, in my standpoint, is a very clear indication of the fragility of some aspects of the body, u00e2 $ u00a6 one must expect definitely a higher level of volatility," he said.Another uncertainty going forward is actually financial policy and whether reserve banks are going to must cut fees much more boldy to battle a stagnation in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has actually cut fees two times this year. The European Central Bank as well as the Banking Company of England possess each revealed one slice until now." Knowing the events which are actually theu00c2 unknowns imminent like the USA governmental political election, our team ended up being obsequious along with a really low dryness, right now we are changing to an extra usual regime," Bruno Verstraete, founder of Lakefield Wealth Administration said to CNBC Wednesday." In the situation of UBS, [additional volatility is] certainly not necessarily a bad trait, given that more volatility indicates additional investing revenue," he included.