.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti mentioned Wednesday that market volatility can intensify in the second half of the year, however he performs not strongly believe the U.S. is actually moving in to a recession.Global equities saw stinging sell-offs recently as capitalists digested weak economical records away from the U.S. which raised concerns about an economic slump in the world's largest economy. It likewise raised questions concerning whether the Federal Get needed to have to become much less hawkish with its own monetary policy posture. The reserve bank kept fees on grip in overdue July at a 23-year high.When asked them about the outlook for the united state economic situation, Ermotti stated: "Not automatically an economic downturn, but most definitely a downturn is actually achievable."" The macroeconomic indications are actually not clear adequate to speak about economic crises, and also actually, it is actually possibly untimely. What we understand is that the Fed has enough capacity to come in and also help that, although it's mosting likely to require time, whatever they carry out to be then broadcast in to the economic condition," the CEO informed CNBC on Wednesday after the financial institution reported its second-quarter results.UBS counts on that the Federal Book will reduce fees by at the very least fifty basis aspects this year. At the moment, traders are actually divided in between a 50 and also a 25 basis factor cut at the Fed's next meeting in September, according to LSEG data.Speaking to CNBC, Ermotti mentioned that our company are actually probably to view greater market volatility in the 2nd one-half of the year, partly due to the U.S. election in Nov." That is actually one variable, yet likewise, if I consider the total geopolitical image, if I take a look at the macroeconomic picture, what our experts viewed in the final number of weeks in terms of volatility, which, in my standpoint, is actually a crystal clear sign of the frailty of some factors of the system, u00e2 $ u00a6 one need to anticipate definitely a higher degree of dryness," he said.Another uncertainty going ahead is monetary plan and whether reserve banks are going to must cut prices even more aggressively to fight a stagnation in the economy. In Switzerland, where UBS is headquartered, the central bank has actually cut prices two times this year. The European Reserve Bank and also the Banking Company of England possess both introduced one slice up until now." Knowing the occasions which are theu00c2 unknowns coming up like the USA governmental election, our company became complacent with a quite low volatility, now we are shifting to an extra ordinary program," Bruno Verstraete, founder of Lakefield Wide range Management informed CNBC Wednesday." In the context of UBS, [additional volatility is actually] not necessarily a negative trait, due to the fact that additional volatility indicates even more investing profit," he incorporated.