.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market dryness can escalate in the second one-half of the year, but he performs not feel the USA is moving right into a recession.Global equities found sharp auctions last week as investors digested weak economical information away from the united state which reared worries concerning a financial decline on the planet's biggest economic condition. It likewise questioned concerning whether the Federal Get needed to have to become a lot less hawkish with its own monetary plan position. The reserve bank maintained fees on hold in late July at a 23-year high.When inquired about the overview for the U.S. economy, Ermotti pointed out: "Certainly not necessarily a downturn, yet absolutely a lag is actually feasible."" The macroeconomic indications are actually not clear sufficient to refer to downturns, as well as really, it's possibly early. What we know is that the Fed has sufficient capacity to intervene and assistance that, although it's mosting likely to take a while, whatever they perform to become after that transmitted in to the economic climate," the chief executive officer informed CNBC on Wednesday after the banking company mentioned its second-quarter results.UBS expects that the Federal Book are going to reduce costs by a minimum of fifty basis points this year. Right now, traders are split between a 50 and a 25 basis point cut at the Fed's next meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our company are actually very likely to view greater market dryness in the second fifty percent of the year, partly due to the USA vote-casting in November." That's one factor, but likewise, if I check out the general geopolitical image, if I check out the macroeconomic photo, what we observed in the last couple of full weeks in regards to volatility, which, in my perspective, is a crystal clear indicator of the fragility of some components of the unit, u00e2 $ u00a6 one need to count on undoubtedly a greater level of volatility," he said.Another anxiety moving forward is monetary plan as well as whether reserve banks will certainly have to cut prices even more strongly to fight a stagnation in the economic condition. In Switzerland, where UBS is actually headquartered, the reserve bank has reduced fees two times this year. The European Reserve Bank and also the Banking Company of England possess both announced one cut up until now." Understanding the celebrations which are actually theu00c2 unknowns on the horizon like the united state presidential vote-casting, our team became obsequious along with an incredibly reduced volatility, currently our team are switching to an extra normal routine," Bruno Verstraete, owner of Lakefield Wide range Administration told CNBC Wednesday." In the context of UBS, [even more volatility is actually] certainly not necessarily a bad factor, considering that additional dryness implies additional exchanging earnings," he included.