.Sergio Ermotti, president of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti mentioned Wednesday that market dryness could possibly boost in the 2nd half of the year, however he performs not feel the U.S. is heading into a recession.Global equities viewed sharp auctions last week as capitalists digested weak economic data away from the united state which reared anxieties about a financial recession worldwide's biggest economic climate. It likewise raised questions regarding whether the Federal Reserve required to become much less hawkish with its own monetary policy standpoint. The central bank always kept rates on grip in late July at a 23-year high.When asked them about the expectation for the USA economy, Ermotti mentioned: "Not necessarily a downturn, but most definitely a lag is actually achievable."" The macroeconomic clues are actually not clear enough to discuss economic crises, as well as in fact, it's probably early. What we understand is that the Fed possesses good enough capability to come in and also assistance that, although it is actually heading to take time, whatever they perform to become then sent in to the economic condition," the CEO told CNBC on Wednesday after the financial institution mentioned its second-quarter results.UBS anticipates that the Federal Reserve will cut costs by a minimum of 50 manner factors this year. Currently, investors are actually split between a 50 and a 25 manner factor cut at the Fed's upcoming conference in September, depending on to LSEG data.Speaking to CNBC, Ermotti stated that our company are likely to view higher market volatility in the second one-half of the year, partially due to the united state vote-casting in November." That is actually one aspect, however likewise, if I consider the general geopolitical image, if I check out the macroeconomic image, what our team found in the last number of full weeks in terms of volatility, which, in my perspective, is a clear indication of the delicacy of some factors of the system, u00e2 $ u00a6 one must anticipate definitely a much higher degree of volatility," he said.Another anxiety going forward is financial policy and whether central banks will must reduce costs extra strongly to cope with a stagnation in the economic condition. In Switzerland, where UBS is actually headquartered, the central bank has cut prices twice this year. The International Central Bank and the Financial Institution of England have both declared one slice up until now." Understanding the events which are actually theu00c2 unknowns coming up like the U.S. governmental election, our company became satisfied along with a really low volatility, currently our company are actually shifting to a much more typical program," Bruno Verstraete, owner of Lakefield Wealth Monitoring told CNBC Wednesday." In the situation of UBS, [additional dryness is actually] certainly not always a negative trait, since more volatility means more trading income," he included.