.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 could increase in the second fifty percent of the year, yet he does certainly not feel the USA is actually moving in to a recession.Global equities viewed sharp auctions recently as investors digested weak economic data away from the united state which reared anxieties regarding an economical decline on earth's biggest economic climate. It also raised questions about whether the Federal Book required to be much less hawkish with its own financial plan viewpoint. The central bank kept rates on grip in overdue July at a 23-year high.When asked them about the expectation for the USA economic condition, Ermotti said: "Certainly not always a financial crisis, however absolutely a slowdown is actually achievable."" The macroeconomic indicators are actually unclear enough to talk about financial crises, as well as really, it is actually most likely premature. What we know is actually that the Fed has enough capability to come in as well as support that, although it's visiting take a while, whatever they carry out to become then broadcast into the economic situation," the chief executive officer said to CNBC on Wednesday after the financial institution reported its second-quarter results.UBS counts on that the Federal Reserve are going to reduce costs through a minimum of 50 basis aspects this year. At the moment, traders are split in between a fifty and also a 25 basis aspect cut at the Fed's following meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our team are probably to find higher market dryness in the second fifty percent of the year, partly due to the united state political election in Nov." That's one element, yet also, if I consider the total geopolitical picture, if I consider the macroeconomic photo, what our company observed in the final number of weeks in relations to volatility, which, in my viewpoint, is a clear indicator of the fragility of some elements of the body, u00e2 $ u00a6 one should anticipate undoubtedly a higher degree of volatility," he said.Another unpredictability going ahead is monetary plan as well as whether reserve banks will certainly need to reduce costs much more boldy to battle a decline in the economic situation. In Switzerland, where UBS is headquartered, the central bank has actually cut costs two times this year. The International Central Bank as well as the Financial Institution of England possess each revealed one cut up until now." Understanding the activities which are theu00c2 unknowns coming up like the USA presidential election, our company came to be obsequious along with a quite low dryness, currently we are shifting to a more typical program," Bruno Verstraete, founder of Lakefield Wide range Control informed CNBC Wednesday." In the circumstance of UBS, [additional dryness is actually] not essentially a negative trait, given that more volatility means additional exchanging earnings," he incorporated.