.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti pointed out Wednesday that market volatility could boost in the second half of the year, however he does not strongly believe the USA is actually moving into a recession.Global equities found sharp auctions recently as investors digested weak economical records out of the USA which reared concerns about an economic downturn on earth's biggest economic condition. It likewise questioned regarding whether the Federal Get needed to become a lot less hawkish with its monetary policy posture. The reserve bank kept costs on hold in overdue July at a 23-year high.When inquired about the overview for the united state economy, Ermotti pointed out: "Certainly not automatically an economic slump, but most definitely a slowdown is actually achievable."" The macroeconomic clues are unclear sufficient to refer to downturns, and really, it is actually most likely untimely. What we know is actually that the Fed has enough capability to intervene as well as assistance that, although it's heading to take some time, whatever they do to become after that transferred in to the economic situation," the chief executive officer said to CNBC on Wednesday after the banking company stated its second-quarter results.UBS counts on that the Federal Book are going to cut costs by at the very least fifty manner factors this year. Presently, traders are actually divided between a 50 and a 25 basis point cut at the Fed's following meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our company are actually very likely to see greater market volatility in the 2nd one-half of the year, partially because of the USA political election in November." That's one variable, however additionally, if I take a look at the overall geopolitical image, if I examine the macroeconomic image, what we observed in the last couple of weeks in terms of volatility, which, in my viewpoint, is actually a crystal clear indicator of the fragility of some components of the system, u00e2 $ u00a6 one must anticipate definitely a higher level of volatility," he said.Another unpredictability going ahead is actually financial plan as well as whether reserve banks will certainly must reduce fees extra boldy to battle a stagnation in the economy. In Switzerland, where UBS is actually headquartered, the reserve bank has actually cut rates twice this year. The European Reserve Bank as well as the Banking Company of England have each introduced one cut until now." Recognizing the activities which are theu00c2 unknowns on the horizon like the USA governmental election, our team ended up being complacent along with an extremely low dryness, right now we are actually moving to a much more usual regimen," Bruno Verstraete, founder of Lakefield Riches Control said to CNBC Wednesday." In the context of UBS, [additional volatility is] certainly not necessarily a poor factor, given that even more dryness implies more trading income," he added.