.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market volatility could increase in the second one-half of the year, however he performs certainly not believe the USA is heading into a recession.Global equities observed sharp sell-offs last week as capitalists digested weak economical records away from the united state which reared concerns regarding a financial downturn worldwide's biggest economy. It likewise raised questions regarding whether the Federal Reserve needed to be a lot less hawkish along with its monetary policy standpoint. The reserve bank kept fees on hold in overdue July at a 23-year high.When asked them about the expectation for the USA economy, Ermotti stated: "Certainly not essentially an economic downturn, but certainly a stagnation is actually feasible."" The macroeconomic indicators are actually not clear sufficient to speak about economic slumps, as well as actually, it's possibly untimely. What we know is actually that the Fed has sufficient capability to intervene as well as assistance that, although it's visiting take time, whatever they perform to be after that broadcast into the economic climate," the CEO informed CNBC on Wednesday after the financial institution stated its own second-quarter results.UBS anticipates that the Federal Get will certainly reduce rates by a minimum of 50 basis factors this year. Presently, investors are actually split in between a 50 as well as a 25 basis factor cut at the Fed's following meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti mentioned that our company are actually probably to observe higher market dryness in the second half of the year, somewhat due to the U.S. election in November." That is actually one element, however also, if I consider the total geopolitical photo, if I take a look at the macroeconomic photo, what our experts observed in the last couple of full weeks in relations to dryness, which, in my perspective, is actually a very clear indication of the delicacy of some elements of the device, u00e2 $ u00a6 one should anticipate definitely a higher degree of dryness," he said.Another anxiety going ahead is financial policy and whether reserve banks are going to have to cut rates even more aggressively to fight a slowdown in the economic situation. In Switzerland, where UBS is headquartered, the reserve bank has actually cut rates two times this year. The International Central Bank and the Financial Institution of England possess both declared one cut up until now." Understanding the celebrations which are theu00c2 unknowns imminent like the U.S. presidential election, our experts became unconcerned along with a very reduced volatility, currently our team are moving to a much more normal regimen," Bruno Verstraete, founder of Lakefield Riches Monitoring informed CNBC Wednesday." In the context of UBS, [even more volatility is] not necessarily a poor factor, considering that even more dryness indicates additional investing income," he incorporated.