.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market volatility could escalate in the 2nd one-half of the year, but he does not think the USA is actually moving into a recession.Global equities saw stinging auctions last week as clients digested unstable economical data away from the USA which raised concerns about a financial slump on the planet's largest economy. It additionally questioned concerning whether the Federal Book required to become much less hawkish with its financial policy standpoint. The central bank kept rates on hold in overdue July at a 23-year high.When asked them about the overview for the united state economy, Ermotti stated: "Not always a recession, yet certainly a slowdown is feasible."" The macroeconomic signs are actually not clear sufficient to refer to downturns, and also really, it's possibly untimely. What we know is that the Fed possesses sufficient ability to action in and also support that, although it is actually mosting likely to take some time, whatever they perform to be at that point transmitted into the economic climate," the CEO told CNBC on Wednesday after the financial institution reported its own second-quarter results.UBS anticipates that the Federal Get will definitely cut fees by at least 50 basis points this year. Right now, traders are actually divided between a fifty and a 25 basis point cut at the Fed's following conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that we are most likely to view greater market volatility in the second fifty percent of the year, partially because of the U.S. election in Nov." That is actually one factor, however likewise, if I consider the overall geopolitical image, if I examine the macroeconomic photo, what our experts saw in the final number of weeks in relations to dryness, which, in my standpoint, is a clear indication of the fragility of some elements of the unit, u00e2 $ u00a6 one should anticipate certainly a greater level of volatility," he said.Another uncertainty going ahead is actually financial policy and also whether reserve banks will definitely need to reduce costs extra aggressively to fight a stagnation in the economic condition. In Switzerland, where UBS is headquartered, the reserve bank has actually cut fees two times this year. The International Central Bank as well as the Bank of England have both announced one slice so far." Knowing the celebrations which are theu00c2 unknowns at hand like the united state governmental election, we became satisfied along with an incredibly low dryness, currently our experts are actually switching to an even more ordinary program," Bruno Verstraete, creator of Lakefield Riches Administration told CNBC Wednesday." In the situation of UBS, [even more dryness is actually] certainly not always a bad factor, because even more dryness indicates more exchanging profit," he incorporated.