.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market volatility might escalate in the second one-half of the year, but he does certainly not believe the united state is actually moving in to a recession.Global equities found stinging auctions last week as capitalists digested unstable economical records away from the U.S. which reared anxieties regarding a financial decline on earth's biggest economy. It likewise questioned about whether the Federal Book required to become a lot less hawkish with its monetary plan viewpoint. The central bank always kept prices on hold in overdue July at a 23-year high.When asked them about the overview for the U.S. economy, Ermotti stated: "Certainly not always an economic downturn, yet most definitely a decline is actually possible."" The macroeconomic red flags are unclear enough to refer to economic slumps, and actually, it's possibly premature. What we understand is that the Fed has good enough capability to intervene and also support that, although it is actually visiting take a while, whatever they do to become at that point transmitted in to the economic situation," the CEO informed CNBC on Wednesday after the bank mentioned its second-quarter results.UBS anticipates that the Federal Reserve are going to cut rates through at least fifty basis factors this year. Currently, investors are actually divided between a 50 as well as a 25 basis factor cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our company are likely to observe much higher market volatility in the 2nd fifty percent of the year, partly due to the united state political election in Nov." That is actually one factor, but additionally, if I consider the total geopolitical picture, if I take a look at the macroeconomic photo, what we observed in the last couple of full weeks in terms of volatility, which, in my point of view, is a crystal clear sign of the fragility of some components of the body, u00e2 $ u00a6 one must count on definitely a higher degree of dryness," he said.Another anxiety going ahead is financial policy as well as whether central banks will definitely need to cut costs even more aggressively to combat a decline in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has cut rates twice this year. The European Central Bank and the Bank of England possess both revealed one slice up until now." Understanding the activities which are theu00c2 unknowns coming up like the USA governmental political election, our company became unconcerned with an extremely low dryness, right now our company are shifting to an even more usual routine," Bruno Verstraete, creator of Lakefield Wide range Administration informed CNBC Wednesday." In the circumstance of UBS, [additional volatility is actually] not always a negative trait, considering that more dryness indicates even more exchanging income," he added.