.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti stated Wednesday that market volatility might boost in the second one-half of the year, but he does not strongly believe the U.S. is actually moving in to a recession.Global equities observed sharp auctions last week as clients digested weak economical data out of the USA which reared anxieties regarding an economical recession on the planet's largest economic situation. It additionally questioned about whether the Federal Book needed to have to become a lot less hawkish with its own monetary plan stance. The central bank always kept prices on grip in overdue July at a 23-year high.When asked about the expectation for the U.S. economy, Ermotti mentioned: "Not necessarily an economic crisis, but most definitely a downturn is possible."" The macroeconomic clues are actually not clear enough to speak about recessions, as well as actually, it is actually probably premature. What we know is that the Fed has good enough capacity to intervene and also support that, although it's heading to take a while, whatever they do to become after that sent into the economic condition," the chief executive officer informed CNBC on Wednesday after the financial institution reported its second-quarter results.UBS expects that the Federal Reserve will definitely reduce fees through at least 50 basis aspects this year. Currently, investors are actually split in between a 50 and 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 experts are probably to observe much higher market volatility in the second half of the year, partially due to the USA vote-casting in Nov." That is actually one factor, yet additionally, if I examine the total geopolitical picture, if I consider the macroeconomic photo, what our company viewed in the last number of full weeks in terms of dryness, which, in my perspective, is a clear sign of the frailty of some factors of the system, u00e2 $ u00a6 one must count on definitely a much higher degree of volatility," he said.Another anxiety going ahead is actually monetary plan and also whether reserve banks will certainly must cut fees a lot more strongly to combat a slowdown in the economy. In Switzerland, where UBS is headquartered, the reserve bank has actually reduced rates twice this year. The European Central Bank as well as the Banking Company of England possess each declared one cut thus far." Recognizing the celebrations which are theu00c2 unknowns on the horizon like the USA presidential vote-casting, our experts ended up being obsequious with a quite reduced volatility, now we are changing to a more usual program," Bruno Verstraete, owner of Lakefield Wealth Control told CNBC Wednesday." In the context of UBS, [more dryness is] certainly not automatically a bad trait, due to the fact that even more volatility suggests even more trading earnings," he added.