.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market dryness can magnify in the second one-half of the year, but he does not strongly believe the U.S. is actually moving right into a recession.Global equities saw sharp auctions last week as entrepreneurs digested weak economic records away from the united state which raised worries regarding a financial downturn around the world's most extensive economic condition. It additionally raised questions about whether the Federal Get required to become much less hawkish along with its own financial policy posture. The central bank maintained fees on grip in overdue July at a 23-year high.When asked about the expectation for the united state economic climate, Ermotti mentioned: "Not always an economic slump, yet undoubtedly a stagnation is possible."" The macroeconomic indications are not clear adequate to refer to recessions, and also in fact, it's perhaps early. What we know is actually that the Fed has sufficient ability to come in and assistance that, although it's visiting take a while, whatever they carry out to be then sent into the economic climate," the chief executive officer informed CNBC on Wednesday after the banking company stated its second-quarter results.UBS anticipates that the Federal Get will certainly reduce costs by at least fifty manner factors this year. Right now, investors are actually divided in between a fifty and also a 25 manner factor cut at the Fed's upcoming appointment in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our team are most likely to see much higher market volatility in the 2nd fifty percent of the year, somewhat as a result of the USA election in Nov." That is actually one aspect, yet additionally, if I examine the overall geopolitical image, if I look at the macroeconomic image, what we viewed in the final couple of weeks in relations to volatility, which, in my point of view, is a clear indicator of the frailty of some components of the body, u00e2 $ u00a6 one ought to count on definitely a higher level of dryness," he said.Another anxiety moving forward is monetary policy and whether reserve banks are going to need to reduce prices much more boldy to deal with a lag in the economic condition. In Switzerland, where UBS is actually headquartered, the central bank has actually reduced costs twice this year. The European Central Bank and the Bank of England possess each announced one cut thus far." Recognizing the celebrations which are actually theu00c2 unknowns at hand like the U.S. presidential political election, our team came to be satisfied with a really low dryness, now we are actually moving to a more ordinary program," Bruno Verstraete, founder of Lakefield Wide range Monitoring told CNBC Wednesday." In the context of UBS, [additional dryness is actually] not automatically a poor factor, given that more volatility indicates more investing income," he incorporated.