.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market dryness could heighten in the second one-half of the year, however he carries out certainly not think the U.S. is actually heading in to a recession.Global equities viewed stinging auctions recently as real estate investors digested weak economical information out of the USA which increased worries about an economic downturn worldwide's biggest economic condition. It likewise questioned concerning whether the Federal Get required to be a lot less hawkish with its own monetary plan viewpoint. The central bank kept prices on hold in late July at a 23-year high.When inquired about the expectation for the united state economic climate, Ermotti stated: "Certainly not essentially a financial crisis, but most definitely a lag is possible."" The macroeconomic indications are unclear enough to speak about economic downturns, as well as actually, it is actually most likely untimely. What we know is that the Fed has good enough ability to action in and help that, although it is actually visiting take some time, whatever they perform to become then transmitted in to the economic situation," the CEO said to CNBC on Wednesday after the financial institution disclosed its own second-quarter results.UBS anticipates that the Federal Book will cut costs by at the very least 50 manner factors this year. At the moment, traders are actually divided between a fifty as well as a 25 basis point cut at the Fed's following meeting in September, according to LSEG data.Speaking to CNBC, Ermotti pointed out that our experts are actually very likely to view much higher market dryness in the 2nd one-half of the year, somewhat as a result of the united state vote-casting in Nov." That's one element, but likewise, if I consider the general geopolitical photo, if I consider the macroeconomic image, what we found in the last number of full weeks in regards to volatility, which, in my standpoint, is actually a clear indicator of the frailty of some aspects of the body, u00e2 $ u00a6 one must count on most definitely a higher level of volatility," he said.Another uncertainty moving forward is financial policy as well as whether reserve banks are going to need to reduce prices much more boldy to fight a downturn in the economic situation. In Switzerland, where UBS is actually headquartered, the central bank has actually cut rates two times this year. The International Reserve Bank as well as the Banking Company of England have each revealed one slice until now." Knowing the activities which are actually theu00c2 unknowns coming up like the united state presidential election, our company came to be contented with a very reduced volatility, now we are actually switching to an even more regular regime," Bruno Verstraete, founder of Lakefield Riches Control told CNBC Wednesday." In the circumstance of UBS, [more dryness is] certainly not essentially a bad factor, considering that more dryness indicates even more investing income," he included.