.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti said Wednesday that market volatility can magnify in the second one-half of the year, yet he performs certainly not believe the USA is moving in to a recession.Global equities found sharp sell-offs last week as investors digested weak financial data out of the U.S. which increased worries regarding an economic decline on the planet's most extensive economic climate. It likewise questioned about whether the Federal Book needed to have to be a lot less hawkish with its monetary policy stance. The reserve bank always kept costs on grip in late July at a 23-year high.When asked them about the outlook for the united state economic condition, Ermotti claimed: "Certainly not automatically a downturn, but absolutely a decline is feasible."" The macroeconomic signs are not clear adequate to speak about downturns, as well as actually, it is actually probably untimely. What we understand is actually that the Fed possesses sufficient ability to action in as well as support that, although it's mosting likely to require time, whatever they carry out to be after that sent in to the economy," the CEO informed CNBC on Wednesday after the financial institution disclosed its own second-quarter results.UBS anticipates that the Federal Get are going to reduce prices through at the very least 50 basis aspects this year. Presently, traders are actually split in between a fifty and also a 25 manner factor cut at the Fed's next conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that we are actually most likely to observe much higher market dryness in the second one-half of the year, partly as a result of the united state election in Nov." That's one aspect, yet also, if I take a look at the total geopolitical image, if I check out the macroeconomic image, what our company saw in the last number of full weeks in regards to dryness, which, in my viewpoint, is a crystal clear indication of the fragility of some components of the system, u00e2 $ u00a6 one need to expect most definitely a higher level of dryness," he said.Another uncertainty going ahead is monetary plan as well as whether reserve banks will definitely have to reduce fees a lot more strongly to combat a downturn in the economic condition. In Switzerland, where UBS is headquartered, the central bank has actually reduced rates two times this year. The European Central Bank and the Bank of England have both introduced one slice so far." Understanding the events which are actually theu00c2 unknowns imminent like the USA governmental political election, our company became contented along with a very low volatility, right now our team are moving to an extra regular regime," Bruno Verstraete, founder of Lakefield Wide range Administration told CNBC Wednesday." In the context of UBS, [additional dryness is] not necessarily a negative trait, since additional volatility indicates more investing profit," he included.