.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market dryness might escalate in the second fifty percent of the year, but he does not think the U.S. is actually moving in to a recession.Global equities observed sharp sell-offs last week as capitalists digested unstable economical information out of the USA which brought up anxieties about an economical downturn worldwide's most extensive economic climate. It likewise raised questions regarding whether the Federal Reserve required to be less hawkish with its own monetary policy stance. The central bank kept fees on grip in late July at a 23-year high.When asked them about the outlook for the USA economy, Ermotti said: "Certainly not always a recession, but certainly a slowdown is possible."" The macroeconomic clues are actually not clear enough to refer to recessions, and really, it's perhaps early. What we know is that the Fed has enough capacity to intervene and also support that, although it's going to take a while, whatever they carry out to be then transmitted right into the economic condition," the chief executive officer told CNBC on Wednesday after the banking company disclosed its own second-quarter results.UBS expects that the Federal Reserve will cut prices through at least fifty manner points this year. At the moment, traders are actually split in between a 50 and also a 25 basis point cut at the Fed's upcoming appointment in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our team are actually very likely to view higher market volatility in the second one-half of the year, somewhat due to the U.S. vote-casting in November." That is actually one element, yet additionally, if I consider the overall geopolitical image, if I take a look at the macroeconomic image, what we saw in the final couple of full weeks in regards to dryness, which, in my viewpoint, is actually a very clear sign of the fragility of some aspects of the body, u00e2 $ u00a6 one ought to expect absolutely a higher degree of volatility," he said.Another anxiety going forward is monetary plan and whether central banks will have to reduce prices even more boldy to deal with a downturn in the economic situation. In Switzerland, where UBS is actually headquartered, the reserve bank has reduced rates twice this year. The European Central Bank as well as the Financial Institution of England have each revealed one cut until now." Recognizing the activities which are actually theu00c2 unknowns coming up like the united state presidential election, our experts became complacent with a very reduced volatility, right now we are actually switching to a much more regular routine," Bruno Verstraete, owner of Lakefield Wealth Monitoring told CNBC Wednesday." In the circumstance of UBS, [additional dryness is actually] certainly not necessarily a poor factor, considering that more dryness indicates even more investing profit," he added.