.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS CEO Sergio Ermotti said Wednesday that market volatility can magnify in the 2nd fifty percent of the year, however he does certainly not think the U.S. is actually moving into a recession.Global equities saw sharp auctions last week as capitalists digested unstable economic records away from the united state which brought up anxieties regarding a financial recession on earth's largest economy. It likewise raised questions about whether the Federal Book needed to have to become a lot less hawkish with its monetary plan standpoint. The reserve bank maintained rates on hold in overdue July at a 23-year high.When asked about the expectation for the U.S. economic situation, Ermotti said: "Certainly not necessarily an economic downturn, yet most definitely a lag is actually feasible."" The macroeconomic indications are unclear adequate to talk about economic downturns, and also really, it's possibly untimely. What we know is that the Fed has good enough ability to action in as well as assistance that, although it's mosting likely to take a while, whatever they carry out to become then transmitted in to the economic condition," the chief executive officer said to CNBC on Wednesday after the banking company reported its second-quarter results.UBS anticipates that the Federal Book will reduce costs by at the very least 50 basis aspects this year. At the moment, investors are divided between a 50 and a 25 basis aspect cut at the Fed's upcoming meeting in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our team are actually most likely to observe higher market dryness in the second fifty percent of the year, partly due to the united state election in November." That's one variable, however additionally, if I check out the total geopolitical picture, if I examine the macroeconomic photo, what our experts viewed in the last couple of weeks in terms of volatility, which, in my standpoint, is actually a crystal clear indication of the fragility of some aspects of the unit, u00e2 $ u00a6 one should anticipate absolutely a higher degree of volatility," he said.Another unpredictability going forward is actually monetary plan and whether central banks will certainly must cut costs a lot more aggressively to battle a lag in the economic situation. In Switzerland, where UBS is headquartered, the central bank has actually reduced fees twice this year. The European Central Bank as well as the Bank of England possess each announced one cut thus far." Understanding the occasions which are actually theu00c2 unknowns coming up like the U.S. governmental political election, our experts came to be satisfied along with a quite low dryness, right now our experts are actually switching to a more normal regimen," Bruno Verstraete, owner of Lakefield Riches Management said to CNBC Wednesday." In the circumstance of UBS, [additional dryness is] not necessarily a bad point, since more dryness means even more trading revenue," he added.