.Sergio Ermotti, ceo of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland Double A u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market volatility could possibly increase in the 2nd one-half of the year, but he performs certainly not believe the USA is actually moving right into a recession.Global equities observed sharp auctions recently as financiers digested unstable economic records out of the USA which reared concerns about an economic slump worldwide's most extensive economic situation. It also raised questions concerning whether the Federal Book needed to become much less hawkish with its own financial policy posture. The reserve bank maintained costs on grip in overdue July at a 23-year high.When asked them about the outlook for the U.S. economy, Ermotti mentioned: "Not necessarily a recession, yet absolutely a lag is achievable."" The macroeconomic clues are actually unclear enough to talk about economic crises, as well as in fact, it is actually most likely untimely. What we understand is actually that the Fed has enough capability to come in and also assistance that, although it's heading to take some time, whatever they do to be then broadcast right into the economic climate," the CEO told CNBC on Wednesday after the bank mentioned its second-quarter results.UBS counts on that the Federal Get will cut prices by at least fifty manner aspects this year. Currently, traders are actually divided in between a fifty as well as a 25 manner point cut at the Fed's upcoming appointment in September, depending on to LSEG data.Speaking to CNBC, Ermotti said that our team are probably to find greater market dryness in the second fifty percent of the year, partially as a result of the united state vote-casting in Nov." That is actually one variable, but likewise, if I take a look at the overall geopolitical image, if I take a look at the macroeconomic photo, what our company saw in the last couple of full weeks in regards to volatility, which, in my perspective, is actually a clear indicator of the frailty of some aspects of the unit, u00e2 $ u00a6 one ought to count on certainly a greater degree of volatility," he said.Another uncertainty going ahead is financial plan as well as whether central banks will certainly need to cut prices a lot more strongly to battle a slowdown in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has reduced costs twice this year. The European Reserve Bank as well as the Bank of England possess each revealed one cut until now." Understanding the events which are theu00c2 unknowns on the horizon like the USA governmental election, our team ended up being satisfied along with an incredibly low dryness, now our company are moving to an even more ordinary regimen," Bruno Verstraete, founder of Lakefield Riches Control informed CNBC Wednesday." In the circumstance of UBS, [more dryness is] not always a negative factor, since even more volatility means even more trading earnings," he added.