.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market volatility could magnify in the 2nd half of the year, however he performs certainly not believe the U.S. is actually heading into a recession.Global equities found sharp auctions last week as clients digested weak economical records out of the U.S. which increased worries about a financial downturn on earth's largest economic climate. It additionally questioned regarding whether the Federal Get required to be less hawkish with its financial policy viewpoint. The central bank always kept rates on hold in overdue July at a 23-year high.When inquired about the outlook for the USA economic climate, Ermotti pointed out: "Certainly not always an economic slump, yet certainly a slowdown is actually achievable."" The macroeconomic signs are unclear sufficient to talk about recessions, as well as in fact, it is actually most likely untimely. What we know is actually that the Fed possesses enough ability to come in and also support that, although it's visiting take time, whatever they perform to be at that point transferred into the economic condition," the CEO informed CNBC on Wednesday after the banking company mentioned its second-quarter results.UBS expects that the Federal Reserve will definitely reduce rates by at the very least fifty manner aspects this year. Currently, traders are actually divided in between a 50 and also a 25 manner point cut at the Fed's upcoming meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our experts are probably to view much higher market volatility in the second fifty percent of the year, partially because of the united state political election in Nov." That's one aspect, however additionally, if I look at the overall geopolitical image, if I look at the macroeconomic image, what our team observed in the last couple of full weeks in regards to dryness, which, in my point of view, is a clear indicator of the delicacy of some components of the body, u00e2 $ u00a6 one should count on most definitely a higher degree of dryness," he said.Another anxiety going forward is monetary plan and also whether central banks are going to have to cut prices even more strongly to battle a lag in the economic condition. In Switzerland, where UBS is actually headquartered, the central bank has cut fees two times this year. The European Reserve Bank and the Financial Institution of England have each announced one slice so far." Recognizing the events which are actually theu00c2 unknowns coming up like the USA presidential vote-casting, we ended up being complacent along with an incredibly reduced volatility, right now we are actually changing to a more ordinary regime," Bruno Verstraete, creator of Lakefield Riches Control said to CNBC Wednesday." In the circumstance of UBS, [more volatility is] not essentially a poor trait, because even more volatility implies additional investing earnings," he included.