.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness can boost in the 2nd half of the year, but he does certainly not believe the united state is heading in to a recession.Global equities observed sharp auctions recently as clients digested unstable economic information out of the U.S. which raised concerns regarding an economic decline worldwide's biggest economic situation. It likewise raised questions regarding whether the Federal Get needed to have to be much less hawkish along with its own monetary plan posture. The central bank kept rates on hold in overdue July at a 23-year high.When asked about the outlook for the USA economy, Ermotti said: "Certainly not necessarily an economic crisis, but absolutely a lag is feasible."" The macroeconomic indicators are not clear sufficient to discuss financial crises, and also really, it is actually probably untimely. What we understand is that the Fed has sufficient capability to intervene and also support that, although it's going to take some time, whatever they carry out to be then transmitted into the economy," the CEO informed CNBC on Wednesday after the bank mentioned its own second-quarter results.UBS counts on that the Federal Reserve will certainly reduce prices through at least fifty basis aspects this year. Presently, investors are actually divided between a 50 and also a 25 basis factor cut at the Fed's next appointment in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our company are actually likely to find higher market volatility in the 2nd half of the year, partly as a result of the USA election in November." That is actually one element, yet additionally, if I consider the overall geopolitical photo, if I take a look at the macroeconomic image, what our team saw in the last number of full weeks in terms of dryness, which, in my perspective, is a very clear indication of the frailty of some aspects of the device, u00e2 $ u00a6 one should anticipate undoubtedly a higher degree of volatility," he said.Another anxiety moving forward is actually monetary policy as well as whether central banks will certainly have to cut fees much more boldy to battle a decline in the economic condition. In Switzerland, where UBS is headquartered, the central bank has actually cut prices two times this year. The European Reserve Bank as well as the Bank of England have both introduced one cut up until now." Recognizing the events which are actually theu00c2 unknowns at hand like the united state governmental vote-casting, our team came to be satisfied with an incredibly low dryness, right now our team are changing to an even more ordinary routine," Bruno Verstraete, founder of Lakefield Riches Control said to CNBC Wednesday." In the context of UBS, [even more dryness is] not essentially a poor trait, since even more volatility means additional trading revenue," he added.