.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti stated Wednesday that market dryness could boost in the second half of the year, yet he carries out not strongly believe the USA is actually heading right into a recession.Global equities viewed stinging auctions last week as capitalists digested unstable economic records away from the USA which raised fears about an economical slump around the world's biggest economy. It also raised questions regarding whether the Federal Book required to become much less hawkish with its own monetary policy standpoint. The central bank maintained costs on hold in overdue July at a 23-year high.When asked about the expectation for the USA economy, Ermotti stated: "Certainly not necessarily an economic slump, but absolutely a decline is actually feasible."" The macroeconomic red flags are unclear sufficient to speak about downturns, and also in fact, it is actually probably early. What we understand is actually that the Fed possesses sufficient capability to intervene and help that, although it is actually visiting take time, whatever they carry out to become at that point transferred right into the economy," the CEO told CNBC on Wednesday after the financial institution stated its second-quarter results.UBS counts on that the Federal Get will certainly reduce prices through at the very least 50 manner points this year. Currently, investors are split in between a 50 and a 25 basis point cut at the Fed's upcoming appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti claimed that our team are actually most likely to find higher market volatility in the second half of the year, partially because of the USA vote-casting in November." That is actually one element, yet also, if I examine the general geopolitical image, if I consider the macroeconomic picture, what our experts saw in the last couple of full weeks in relations to dryness, which, in my viewpoint, is a very clear indicator of the fragility of some factors of the system, u00e2 $ u00a6 one must count on certainly a greater degree of dryness," he said.Another uncertainty moving forward is monetary policy and whether reserve banks are going to need to reduce rates extra strongly to cope with a decline in the economy. In Switzerland, where UBS is headquartered, the central bank has cut rates twice this year. The European Central Bank as well as the Banking Company of England possess both announced one cut so far." Understanding the occasions which are actually theu00c2 unknowns at hand like the USA governmental political election, we ended up being unconcerned along with a really low volatility, now our team are actually switching to a much more ordinary routine," Bruno Verstraete, founder of Lakefield Wealth Management told CNBC Wednesday." In the situation of UBS, [even more volatility is actually] certainly not necessarily a poor trait, because more dryness implies additional exchanging profit," he included.