.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti claimed Wednesday that market volatility might intensify in the second one-half of the year, but he performs not think the USA is heading into a recession.Global equities viewed stinging auctions recently as investors digested weak economic information out of the U.S. which reared fears concerning an economic downturn worldwide's biggest economy. It additionally raised questions regarding whether the Federal Reserve required to become less hawkish with its own monetary plan standpoint. The central bank maintained costs on grip in overdue July at a 23-year high.When asked them about the expectation for the U.S. economic situation, Ermotti said: "Not automatically an economic slump, yet definitely a lag is actually feasible."" The macroeconomic red flags are not clear sufficient to talk about financial crises, as well as in fact, it is actually most likely premature. What we understand is actually that the Fed possesses good enough capability to come in and also help that, although it is actually going to take time, whatever they perform to be then transferred into the economic climate," the CEO informed CNBC on Wednesday after the financial institution stated its second-quarter results.UBS counts on that the Federal Get will reduce prices by at least 50 manner factors this year. Presently, investors are actually split between a fifty and a 25 manner aspect cut at the Fed's following appointment in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our team are actually likely to view higher market dryness in the second half of the year, somewhat as a result of the united state vote-casting in November." That's one factor, but also, if I consider the general geopolitical picture, if I take a look at the macroeconomic photo, what our team viewed in the last number of weeks in regards to dryness, which, in my viewpoint, is actually a clear sign of the fragility of some aspects of the unit, u00e2 $ u00a6 one need to count on absolutely a higher degree of volatility," he said.Another anxiety moving forward is actually monetary policy and whether reserve banks will have to cut rates even more aggressively to battle a downturn in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has actually cut prices twice this year. The International Reserve Bank and the Bank of England possess both declared one cut until now." Recognizing the activities which are actually theu00c2 unknowns on the horizon like the united state presidential vote-casting, our company came to be obsequious with a quite reduced dryness, now our experts are actually shifting to a more usual regimen," Bruno Verstraete, owner of Lakefield Riches Monitoring informed CNBC Wednesday." In the circumstance of UBS, [additional dryness is actually] not necessarily a negative trait, since additional volatility means more investing profit," he incorporated.