.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti claimed Wednesday that market volatility could possibly intensify in the second one-half of the year, but he carries out certainly not believe the united state is heading right into a recession.Global equities observed stinging auctions recently as investors digested unstable economical data out of the united state which reared fears regarding a financial decline worldwide's biggest economic climate. It additionally questioned regarding whether the Federal Book needed to become less hawkish along with its own monetary plan position. The central bank always kept costs on grip in overdue July at a 23-year high.When asked them about the expectation for the U.S. economy, Ermotti stated: "Not necessarily a financial crisis, but undoubtedly a decline is possible."" The macroeconomic indications are actually not clear adequate to discuss recessions, and also in fact, it's possibly premature. What we know is actually that the Fed has good enough capability to come in and also support that, although it's heading to take a while, whatever they perform to be at that point transferred into the economic condition," the chief executive officer said to CNBC on Wednesday after the banking company reported its second-quarter results.UBS expects that the Federal Book are going to reduce prices by a minimum of 50 basis points this year. At the moment, traders are actually split in between a 50 and also a 25 manner aspect cut at the Fed's following conference in September, according to LSEG data.Speaking to CNBC, Ermotti claimed that our company are most likely to find much higher market dryness in the 2nd half of the year, partly as a result of the U.S. election in Nov." That is actually one variable, however also, if I check out the total geopolitical picture, if I take a look at the macroeconomic picture, what our team saw in the final couple of weeks in relations to dryness, which, in my standpoint, is a clear indicator of the delicacy of some components of the system, u00e2 $ u00a6 one must expect absolutely a higher degree of dryness," he said.Another uncertainty going forward is financial plan and whether reserve banks will certainly have to reduce prices even more boldy to battle a stagnation in the economy. In Switzerland, where UBS is actually headquartered, the central bank has reduced prices twice this year. The European Reserve Bank and the Banking Company of England possess both revealed one slice thus far." Understanding the occasions which are theu00c2 unknowns imminent like the USA presidential vote-casting, our team became unconcerned along with an extremely low volatility, currently our experts are actually moving to a much more normal regime," Bruno Verstraete, owner of Lakefield Riches Administration informed CNBC Wednesday." In the circumstance of UBS, [even more volatility is] not essentially a poor thing, given that additional volatility implies additional trading earnings," he incorporated.