.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market volatility can increase in the 2nd one-half of the year, yet he performs certainly not think the USA is actually moving right into a recession.Global equities observed stinging sell-offs recently as clients digested unstable financial information away from the united state which reared concerns about a financial slump on earth's biggest economic climate. It likewise raised questions about whether the Federal Book needed to become less hawkish along with its own financial plan stance. The reserve bank maintained rates on hold in overdue July at a 23-year high.When asked about the expectation for the united state economic climate, Ermotti stated: "Not always an economic crisis, but absolutely a decline is possible."" The macroeconomic indications are actually unclear enough to refer to economic downturns, and in fact, it's possibly early. What we understand is actually that the Fed has sufficient capability to action in and support that, although it is actually mosting likely to take time, whatever they carry out to become at that point broadcast in to the economic situation," the chief executive officer said to CNBC on Wednesday after the banking company reported its second-quarter results.UBS expects that the Federal Reserve will definitely cut prices by at the very least 50 basis aspects this year. Presently, investors are actually divided in between a 50 and also a 25 basis point cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our company are very likely to find much higher market volatility in the 2nd half of the year, partly as a result of the U.S. election in Nov." That is actually one variable, however likewise, if I look at the overall geopolitical image, if I look at the macroeconomic photo, what our company found in the last couple of full weeks in relations to volatility, which, in my point of view, is actually a clear indication of the frailty of some aspects of the unit, u00e2 $ u00a6 one should expect absolutely a greater degree of volatility," he said.Another uncertainty moving forward is monetary policy as well as whether reserve banks will definitely need to reduce rates much more boldy to combat a stagnation in the economic condition. In Switzerland, where UBS is actually headquartered, the central bank has reduced costs twice this year. The European Reserve Bank as well as the Bank of England have both announced one cut up until now." Understanding the occasions which are actually theu00c2 unknowns on the horizon like the USA governmental political election, our experts became unconcerned with a really low dryness, right now our team are switching to a more typical regimen," Bruno Verstraete, founder of Lakefield Wide range Control informed CNBC Wednesday." In the context of UBS, [more dryness is actually] not necessarily a bad thing, since even more dryness suggests even more trading profit," he incorporated.