.Sergio Ermotti, chief executive officer of UBS GroupStefan Wermuth|Bloomberg|Getty ImagesZURICH, Switzerland u00ea u00b7 UBS chief executive officer Sergio Ermotti said Wednesday that market volatility might boost in the 2nd one-half of the year, however he does certainly not strongly believe the U.S. is moving in to a recession.Global equities found stinging sell-offs last week as investors digested unstable financial information out of the U.S. which raised fears regarding an economical downturn on earth's largest economic condition. It likewise raised questions regarding whether the Federal Get needed to have to be much less hawkish along with its monetary policy position. The reserve bank always kept rates on hold in overdue July at a 23-year high.When asked them about the outlook for the USA economic condition, Ermotti stated: "Certainly not automatically an economic crisis, yet absolutely a downturn is feasible."" The macroeconomic clues are not clear enough to refer to economic slumps, and in fact, it is actually possibly early. What we know is that the Fed possesses good enough ability to action in and help that, although it's going to take time, whatever they perform to become after that broadcast into the economic situation," the CEO said to CNBC on Wednesday after the banking company disclosed its second-quarter results.UBS counts on that the Federal Book will definitely reduce prices through at the very least 50 basis aspects this year. Currently, traders are actually divided between a fifty and a 25 basis point cut at the Fed's next conference in September, according to LSEG data.Speaking to CNBC, Ermotti said that our experts are most likely to observe greater market volatility in the second fifty percent of the year, partly because of the united state vote-casting in Nov." That is actually one variable, yet also, if I consider the general geopolitical photo, if I look at the macroeconomic image, what our team found in the final number of full weeks in relations to volatility, which, in my point of view, is actually a very clear indication of the fragility of some components of the unit, u00e2 $ u00a6 one must count on definitely a much higher level of dryness," he said.Another unpredictability going ahead is actually financial plan as well as whether reserve banks will must cut costs a lot more boldy to battle a downturn in the economic climate. In Switzerland, where UBS is actually headquartered, the central bank has cut rates twice this year. The European Reserve Bank and the Financial Institution of England possess both declared one cut up until now." Knowing the activities which are actually theu00c2 unknowns at hand like the U.S. governmental vote-casting, our experts became satisfied along with a very low volatility, right now our company are actually switching to a more usual program," Bruno Verstraete, founder of Lakefield Wide range Monitoring told CNBC Wednesday." In the context of UBS, [even more volatility is] not automatically a bad factor, due to the fact that even more dryness indicates even more exchanging income," he incorporated.