.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti pointed out Wednesday that market dryness can increase in the 2nd fifty percent of the year, yet he does certainly not think the U.S. is heading into a recession.Global equities saw stinging auctions recently as investors digested weak economical information away from the USA which increased fears concerning a financial decline on the planet's most extensive economic situation. It additionally raised questions concerning whether the Federal Reserve required to be a lot less hawkish with its financial plan standpoint. The central bank maintained prices on hold in overdue July at a 23-year high.When asked about the expectation for the united state economic condition, Ermotti said: "Not necessarily a financial crisis, however most definitely a stagnation is possible."" The macroeconomic red flags are unclear enough to talk about recessions, and in fact, it is actually most likely untimely. What we understand is that the Fed has sufficient ability to action in and also assistance that, although it's mosting likely to require time, whatever they do to become after that transferred in to the economic climate," the CEO said to CNBC on Wednesday after the bank reported its second-quarter results.UBS anticipates that the Federal Book will reduce fees through at the very least 50 manner aspects this year. At the moment, traders are actually divided in between a 50 as well as a 25 manner factor cut at the Fed's following appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti pointed out that our team are most likely to observe higher market volatility in the second one-half of the year, somewhat due to the USA political election in November." That's one aspect, however additionally, if I check out the total geopolitical photo, if I check out the macroeconomic image, what our team observed in the final number of full weeks in regards to dryness, which, in my perspective, is a clear indicator of the fragility of some aspects of the body, u00e2 $ u00a6 one should expect absolutely a greater degree of dryness," he said.Another anxiety moving forward is actually monetary plan and also whether reserve banks will certainly need to reduce costs even more aggressively to fight a lag in the economic situation. In Switzerland, where UBS is actually headquartered, the central bank has reduced rates two times this year. The European Central Bank and the Banking Company of England have each announced one cut thus far." Knowing the celebrations which are actually theu00c2 unknowns coming up like the united state governmental election, our experts ended up being obsequious with a very reduced volatility, currently our company are actually moving to a more normal regime," Bruno Verstraete, owner of Lakefield Riches Administration said to CNBC Wednesday." In the circumstance of UBS, [additional volatility is actually] not automatically a negative trait, given that more dryness implies more trading revenue," he added.