.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness could boost in the 2nd half of the year, but he carries out certainly not think the united state is actually moving in to a recession.Global equities found stinging sell-offs last week as clients digested unstable financial information away from the united state which reared concerns concerning an economic decline in the world's biggest economy. It likewise raised questions about whether the Federal Reserve needed to have to become much less hawkish with its own monetary policy position. The reserve bank maintained rates on hold in late July at a 23-year high.When inquired about the outlook for the united state economic climate, Ermotti claimed: "Certainly not essentially an economic downturn, however undoubtedly a slowdown is actually achievable."" The macroeconomic clues are actually not clear enough to talk about economic crises, and really, it is actually probably early. What we understand is that the Fed possesses good enough capability to action in and support that, although it's visiting take time, whatever they perform to become after that sent into the economy," the chief executive officer told CNBC on Wednesday after the banking company disclosed its own second-quarter results.UBS counts on that the Federal Book will definitely cut prices by a minimum of fifty basis factors this year. Presently, investors are actually divided in between a fifty as well as a 25 manner factor cut at the Fed's upcoming conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that our company are actually most likely to see higher market dryness in the 2nd half of the year, somewhat due to the united state political election in November." That's one aspect, yet additionally, if I check out the general geopolitical image, if I check out the macroeconomic picture, what our experts observed in the final couple of weeks in relations to volatility, which, in my point of view, is actually a clear indication of the fragility of some components of the unit, u00e2 $ u00a6 one must anticipate definitely a greater degree of dryness," he said.Another anxiety going forward is actually monetary policy and whether central banks will definitely have to reduce fees even more aggressively to fight a lag in the economic climate. In Switzerland, where UBS is headquartered, the reserve bank has reduced fees twice this year. The European Reserve Bank as well as the Banking Company of England have each declared one cut so far." Recognizing the occasions which are theu00c2 unknowns on the horizon like the U.S. governmental election, our experts came to be complacent with a quite reduced volatility, currently our team are actually changing to a more normal regime," Bruno Verstraete, owner of Lakefield Riches Control told CNBC Wednesday." In the situation of UBS, [even more volatility is] certainly not always a poor trait, due to the fact that even more volatility indicates additional investing revenue," he incorporated.