.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market volatility might boost in the second fifty percent of the year, but he carries out certainly not believe the united state is actually heading in to a recession.Global equities viewed stinging auctions recently as capitalists digested unstable financial records away from the U.S. which reared concerns regarding an economical slump on the planet's most extensive economic situation. It likewise raised questions about whether the Federal Book needed to have to be less hawkish with its monetary plan standpoint. The reserve bank kept costs on hold in late July at a 23-year high.When asked about the outlook for the U.S. economic condition, Ermotti stated: "Not automatically an economic crisis, yet most definitely a stagnation is actually possible."" The macroeconomic clues are actually not clear adequate to speak about downturns, as well as really, it's probably early. What we know is that the Fed possesses good enough ability to action in as well as assistance that, although it's mosting likely to take time, whatever they carry out to be after that broadcast in to the economic climate," the chief executive officer said to CNBC on Wednesday after the bank stated its second-quarter results.UBS counts on that the Federal Book will definitely cut fees by at the very least 50 basis factors this year. Right now, investors are actually divided in between a fifty as well as a 25 basis aspect cut at the Fed's following meeting in September, according to LSEG data.Speaking to CNBC, Ermotti stated that our experts are actually likely to observe greater market dryness in the second half of the year, partly as a result of the united state election in November." That is actually one factor, however likewise, if I check out the general geopolitical image, if I take a look at the macroeconomic image, what our team observed in the final number of full weeks in regards to dryness, which, in my point of view, is a crystal clear sign of the delicacy of some components of the body, u00e2 $ u00a6 one should expect definitely a greater level of volatility," he said.Another anxiety moving forward is actually financial plan as well as whether reserve banks will have to reduce fees much more boldy to fight a decline in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has actually reduced prices twice this year. The International Reserve Bank as well as the Banking Company of England have each announced one slice so far." Understanding the activities which are actually theu00c2 unknowns at hand like the united state presidential vote-casting, our company came to be contented with a quite low dryness, currently our company are actually shifting to an extra typical program," Bruno Verstraete, creator of Lakefield Wide range Monitoring informed CNBC Wednesday." In the circumstance of UBS, [additional dryness is] certainly not essentially a negative trait, due to the fact that additional volatility indicates more trading revenue," he included.